Despite growing lawsuits against Do Kwon, Daniel Shin, and Terraform Labs, there has been a consistent effort from the community to revitalize Luna Classic. Since its collapse a couple of months ago, there have been suggestions from the Luna community to initiate a burn mechanism, a move many believe will push Luna Classic’s price higher.
In the last couple of weeks, Luna Classic has shown bullish momentum amid bears fighting tirelessly to regain control.
The Luna Classic community is now focused on Proposal 3568, a protocol for initiating Luna Classic burning mechanism. The proposal includes a tax-burning mechanism to reduce the total supply of Luna Classic tokens. Experts believe the move will push the value of leftover tokens higher. The burning mechanism is expected to stay until the total circulating supply is pegged at 10 billion.
LUNC price trend seems to have reacted to the upcoming burn mechanism, switching to bullish momentum in the short time after breaking out of the falling wedge. In the long term, however, LUNC remains bearish. The massive sell-off after the unfortunate Terra system collapse hasn’t faded away. More so, many investors are still affected by their wounds from the losses incurred and don’t seem to care about any efforts to revive the ecosystem.
LUNA Classic price: Where could it go?
Many analysts have a bearish outlook for LUNC, especially with more attention given to LUNA 2.0. Again, the recent LUNA 2.0 airdrop has impacted negatively to Luna Classic.
With LUNC trading above the 200-day Moving Average, many analysts expect the altcoin to head towards its weekly high of $0.0001234. Should the price be rejected at this level, LUNC will extend losses to $0.00011 and may likely resume its downward trend. For LUNC to continue its bullish breakout, it needs to keep trading above support and make its way to bullish targets of $0.0009807 or $0.0001234.
While the current downward trend of LUNC is due to declining trading volume, many people believe the lack of interest in Luna Classics will push the altcoin further down. Nonetheless, the introduction of the burn mechanism could trigger some positive moves.
