Ekta Mourya
FXStreet
Luna Classic (LUNC) is being supported by nearly 40 decentralized applications (dApps) and the list keeps growing. The world’s largest exchange by volume announced higher frequency of LUNC burn and analysts believe the asset could soon outperform Dogecoin and Shiba Inu.
Also read: AAVE price: What to expect from Aave with upcoming deployment on zkSync 2.0 testnet
Binance updated its LUNC burn mechanism and announced that after the fifth batch of trading fees on LUNC spot and margin trading pairs has been removed from circulation, this practice will take place monthly instead of weekly. Binance’s last weekly burn destroyed 1.5 billion LUNC.
The next big LUNC reduction in supply will now take place post December 1, 2022. Binance has burned 12.5 billion Luna Classic tokens so far, reducing its supply and permanently pulling them out of circulation. Trading fees collected in USD Tether (USDT), Binance USD (BUSD) and Binance Coin (BNB) is converted to LUNC at the exchange rate ahead of the scheduled burn.
Binance update on LUNC burn mechanism
MEXC centralized exchange, LUNC DAO, KuCoin users are the other key entities destroying massive amounts of LUNC. Typically, removing an asset from the circulating supply reduces the selling pressure on it, across exchanges. This is expected to push LUNC price higher, in the long-term as supply dynamics directly influence price. 
LUNC burn implementation by different entities
While the burn tax implementation, entities like Binance and other exchanges removed massive volume of LUNC from circulation. This has failed to push LUNC price higher, meme coins like Dogecoin and Shiba Inu are currently outperforming Luna Classic.
Experts have evaluated the Luna Classic price trend and set long-term targets for the asset. Telegaon, a cryptocurrency price prediction website, predicted the minimum and maximum price of LUNC in 2025 will be $0.0089 and $0.028. Technical analysts analyzed the price performance of LUNC and set an average price of $0.015 for the asset.
Sources at Coinpedia, fintech and cryptocurrency news media are not as optimistic about LUNC’s future performance. Coinpedia believes LUNC could hit a high of $0.002846 and a low of $0.001094 in 2025. The asset’s average price would be $0.001776.
Luna Classic is currently exchanging hands at $0.000241 at exchanges and has yielded 4.6% gains for holders over the past week. Analysts at NewsBTC evaluated the LUNC/USDT price chart and argued that a trend reversal in Luna Classic is likely if bulls push the asset above the 21-day EMA at $0.000277.
As long as LUNC price stays above the key level of $0.000277, Luna Classic could yield higher gains for holders and a future relief rally is likely. 
LUNA/USDT price chart
If the bullish thesis is invalidated, Akash Girimath, analyst at FXStreet believes Luna Classic price could bleed 50% and hit the low volume nodes at $0.000176 and $0.000142. Girimath evaluated Luna Classic’s volume profile and noted that the altcoin is hovering above the Point of Control (POC) at $0.000292. This is the highest volume traded level since August 24. Since Luna Classic bulls failed to defend the volume POC, a decline to $0.000234 is likely. 
LUNC/BUSD perpetual futures
In the ongoing bear market, as Bitcoin’s dominance wanes, altcoins and meme coins are taking center stage. With a recovery in its price, Luna Classic is therefore likely to yield gains for holders and make a comeback before the end of 2023.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Join Telegram
Bitcoin open interest outperformed the entire cryptocurrency market in August, amid hype relating to Bitcoin Spot Exchange-Traded Fund (ETF). The comparison follows a report by Bitfinex, noting that outflows reached $55 billion, with the liquidity crunch giving event-based volatility more influence on prices.
Axie Infinity price rise is evidence that any iota of optimism is serving as a motivation for investors to act bullish, given the condition of the crypto market. AXS holders rushed to stack up on the token, resulting in the cryptocurrency noting double-digit gains.
At a time when the crypto market is not faring well, it would be a stretch to assume that the likes of social tokens would be able to gain attention. However, Friend.tech has debunked that theory rather spectacularly as it has managed to break records for the second time just a month after its launch.
The effects of the bear market continue to bring losses to many, be it investors or companies. The newest victim on the block is Digital Currency Group’s Genesis. While the lending platform was already bankrupt as of January this year, the firm is now shuttering all crypto services.
Bitcoin price remains unfazed by the US CPI announcement on September 13 and continues to move in a range. The weekly chart, however, shows a potential short-term recovery rally that could set the stage for a steep correction.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
