After a week of notable declines in the value of Terra Luna Classic (LUNC), the altcoin has raised hopes of a possible revival. Recently, buyers have boldly taken advantage of LUNC’s price decline, creating robust support and forcing the price to correct upwards. Nevertheless, concerns about a possible pause in the rebound are increasing as sentiment can change quickly if buyers have low confidence near the Fibonacci channels.
LUNC’s open interest is gaining momentum
In recent weeks, the Terra Luna Classic community has made significant strides in the combustion mechanics. The LUNC community has successfully burned 76.04 billion LUNC, achieving another milestone in their ongoing efforts to curtail the circulating supply of LUNC since May 18, 2022. Binance has burned an impressive 38.81 billion LUNC, contributing almost 50% of the total LUNC thus burned. far.
On average, the community burns 440 million LUNCs every week, while Binance sends billions to the burn address through the monthly LUNC burn procedure. In the 14th installment of the LUNC burn mechanism on October 1, Binance burned over 1 billion LUNC tokens, bringing the total LUNC destroyed by the cryptocurrency exchange to date to a monumental 38.81 billion. This is the main reason why the LUNC price is gaining buying confidence.
From an on-chain perspective, LUNC’s open interest experienced a drop of $50,000 on October 9, due to the lowest price in two months. Nevertheless, the OI metric has since recovered and registered an increase of more than $30,000 from the previous day’s reading, indicating a rise in futures positions due to a spike in price volatility.
Interestingly, the long/short ratio recently saw an increase, peaking at 1.002. This involves traders gradually taking bullish positions and controlling the price with 50% long positions. Conversely, sellers are now responding by taking 50% short positions.
What’s next for the LUNC Prize?
Buyers sparked renewed buying interest in LUNC after the price touched a low of $0.000054. As a result, LUNC price is now trying to break out of its bearish area; However, sellers will strongly defend a rise above the EMA20. At the time of writing, LUNC price is trading at $0.0000568, up over 1.1% from yesterday’s price.
If the bulls successfully maintain the momentum and send the price above the EMA20, LUNC price could target the resistance at $0.000068. A successful breakout would indicate the start of a new uptrend, potentially pushing LUNC price towards the all-time high of $0.00008.
On the other hand, should the price retreat from its current position and drop below the crucial support line at $0.000052, this could mean bulls are taking advantage of rallies. This scenario could limit the price to a bearish range of $0.00005 for a few days. However, the rising RSI towards the midline suggests an upside for buyers, weakening the immediate resistance level.