Five months after the biggest crypto crash involving the Terra ecosystem and the collapse of the cryptocurrency LUNA, the LUNC Burn has fully commenced.
All hands are now on deck to reduce the token's total supply and possibly increase the price over the next few years.
Every member of the LUNC community is fully involved, and big corporations like Binance have also jumped in. Binance reportedly holds more than 40% of the cryptocurrency's supply and has agreed to send transaction fees collected on all spot and margin LUNC trades to the burn address.
However, this may not be enough to save LUNC over the coming weeks. The Terra founder, Do Kwon is still on the run, with Interpol hot on his tail. The price action of LUNC doesn't appear to be doing so well either, as there are indicators that the price of the cryptocurrency may slide downward by as much as 20%.
The price action for this week appears to have been testing the $0.000318 support on the charts and has been unable to break upwards.
This formation is disturbing because if the bears manage to step in and reject the bulls with enough momentum, the price of LUNC may move right downwards and retest the $0.000238 support.
The price action on LUNC shows a tight consolidation around the $0.000318 level, meaning that the market lacks volatility and that the bears simply lack enough energy to push the price further.
Recall that the price of LUNC witnessed a 66% spike in late September after Binance's announcement that it would support the Terra Classic burn.
This 66% upward move appears to be aiming for a correction now and can be attributed to the LUNA Foundation Group's slow-paced decision-making as regards compensating their retail investors after the Terra ecosystem originally crashed in May this year.
Coupled with that, the embattled Terra founder Do-Kwon is currently in hiding, and the LUNC burn has been below expectations so far.
To put the LUNC burn in perspective, Terra Classic has a circulating supply of more than 6.9 trillion coins. However, the first week of LUNC burns only took about 5 billion (about 0.8%) off that number.
As a result, the price of LUNC slipped 24% downwards between October 2 and October 6.
Conversely, if the bulls take control and the price of LUNC manages to flip the $0.00031 resistance, LUNC may attempt a 15% bullish bounce to the $0.0004 zone.
Terra founder Do-Kwon is still being hunted by Interpol and several other law enforcement agencies.
The Terra collapse happened months ago, yet the aftermath still seems to follow its founder. Do-Kwon is believed to be hiding in Singapore. However, he continues to deny this fact.
In the latest developments, Do-Kwon may be subject to deportation from Singapore from October 19th after his passport gets revoked by the country. Beyond this point, his stay in Singapore will fall under "overstay" status, and the Terra founder will be deported if found.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)