The world’s largest crypto exchange Binance is known to support Terra Classic (LUNC), which is back to life. In this context, the exchange helps the altcoin ecosystem with the LUNC burning mechanism. In the latest development, Binance has changed the LUNC burn to monthly instead of weekly. In this midst, Binance burned 13.712 billion LUNC in October. Crypto analyst Akash Girimath explains how to prepare for the next 20% attack on LUNC.
Binance will now burn LUNCs monthly
The world’s largest crypto exchange Binance has changed the timeframe on the LUNC burn mechanism from weekly to monthly. So far, Binance has burned 13,712 billion LUNC tokens at prices in the LUNC spot and margin trading processes. In addition, the Terra Classic community also supports the burning movement.
Koindeks.com As you follow, Binance burned 1.26 billion LUNC in the fifth batch of its weekly burn app. After this process, the stock market made a change in its time frame rules. Accordingly, it ended the weekly burning and switched to the monthly LUNC burning. According to the new application, the next LUNC burning process will take place on December 1. In this move, from October 30 to November 29, LUNC will burn off the price of the spot and margin processes.
Binance will calculate the process prices for the previous month on the first day of each month. Next on-chain burning processes and monthly report will be updated next day. In the middle, the LUNC measure burned is falling due to low trading and multiple bids crossing, which has negatively affected the sentiment. Binance burned more than 5.5 billion LUNC in the first batch on October 31, while only 1.26 billion LUNC in the fifth batch.
However, the community accepted Proposal 5234, which lowered the tax-burn rate from 1.2% to 0.2%. In addition, willing developer cluster Terra Rebels has announced proposals for new validators. After this development, there has been an increase in Terra Classic validators.
“Altcoin price ready to take action!”
Akash Girimath shares the following technical analysis for the LUNC price. LUNC has been slowly falling since its exponential rise formed a local top in September. What has changed over the past few weeks is that the altcoin is currently bouncing out of a twelve-hour demand zone. Accordingly, it goes from $0.000165 to $0.000234.
This support structure allowed the LUNC to jump twice. But the latest retest is possible to slide a little lower to tag the $0.000222 barrier. A resurgence in buying pressure at this barrier is likely to result in another move to $0.00260. This increase means an increase of 16%. However, traders can expect an increase to the $0.000275 level to collect the buy-stop liquidity. In this case, the extended move means a 20% benefit for the bulls.
Regardless of its bullish outlook, the altcoin has already tagged the $0.000165 to $0.000234 demand zone multiple times. Thus, the efficiency of generating bull attacks decreased. Therefore, it is possible that a slow but persistent selling pressure will invalidate the optimism generated by this structure. Notably, a break of the $0.000160 support level will trigger a correct bearish dive towards $0.000134 for LUNC.