LUNC’s price was believed to gain significant bullish momentum since the beginning as the community was not in favour of LUNA 2.0. The Terra community then (now TerraClassic) always wanted to burn the excess minted tokens rather than create 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.
Therefore, in a recent update, the community adopted the Tax or Burn 1.2% proposal for TerraClassic (LUC). According to the proposal, for each buy/sell transaction, 1.2% of LUNC coins will be burned until the supply reaches the 10 billion mark.
This drastically impacted the LUNC price, which surged more than 100% since the previous bottom. Moreover, the asset is still displaying a huge possibility of maintaining a strong uptrend ahead.
Since the drop, LUNC price has maintained a noticeable downtrend within a parallel channel. Prices amid the recent price decline had marked all-time lows breaking through the last line of defense. However, as Coinpedia predicted earlier, prices rebounded from these levels and quickly instilled strong bullish momentum.
Currently, after a gigantic upswing, the bulls appear to be temporarily exhausted, but still hold a significant dominance over the rally. On the other hand, the formation of the ‘Doji candle’ indicates the bearish pressure accumulating. Luckily, the candle pattern is bullish, indicating that the upcoming price action could maintain a significant bullish trend.
However, the next candle, if it turns out to be green, can confirm the result of the Doji candle which can push the price higher beyond $0.0001 initially. On the other hand, the proposal just received a nod, but the implementation is still ongoing. Therefore, once the LUNC Tax/Burn 1.2% is implemented, we can expect a strong bullish rally ahead.
