LUNC price was believed to gain significant bullish momentum since the onset as the community was not in favor of LUNA 2.0. The Terra community then (now TerraClassic) was always in favor of burning the excess minted tokens rather than creating a new chain. As the LUNC & USDTC prices are highly dependent on the number of tokens in circulation, the need of squeezing the tokens in circulation became mandatory.
However, in a recent update, the community has passed the Tax or Burn 1.2% proposal for TerraClassic, LUNC. As stated by the proposal, for every buys/sells transaction, 1.2% of LUNC coins will be burnt until the supply reaches the 10 billion mark.
This drastically impacted the LUNC price, which surged more than 100% since the previous bottoms. Moreover, the asset is still displaying a huge possibility of maintaining a strong uptrend ahead.
Since the airdrop, the LUNC price maintained a notable descending trend within a parallel channel. The prices amid the recent price slash had marked the lowest levels slicing through the last line of defense However, as Coinpedia predicted earlier, the prices rebounded from these levels and quickly inculcated a strong bullish momentum.
Currently, after a gigantic upswing, the bulls appear to be exhausted a bit, but still hold a significant dominance over the rally. On the other hand, the formation of the ‘Doji candle’ indicates the bearish pressure being accumulated. Luckily, the candle pattern is bullish and hence the upcoming price action could maintain a significant bullish trend.
However, the next candle if turns out to be green may confirm the result of the Doji candle that may bring up the price above $0.0001 initially. On the other hand, the proposal has just received a nod, but the implementation is still underway. Therefore, once the LUNC Tax/Burn 1.2% is implemented, then one can expect a strong bull rally ahead.
Terra Classic Holders Spikes 500%
As people continue to run from Terra’s LUNC token and its accompanying stablecoin, UST, recent data from CoinMarketCap showed that even most people are running towards it.
Following the May 9th incident that resulted in the de-pegging of the UST stable coin and the collapse of Terr’s LUNA, which lead to the introduction of the new token, LUNA CLASSIC.
As stated by the CoinMarketCap, over the last month, more users have continued to hold the LUNC token. In the last month, the number of unique addresses holding the LUNC token grew by over 500%. At the time of writing, the total number of unique addresses holding this collapsed token stood above 10,000 after marking a spot beneath the 2,000 regions just about a month ago.