TerraClassic prices have been trading in a steep descending trend ever since the beginning of the October trade. Meanwhile, the asset underwent a significant upswing as Binance validators burned over 1.5 billion LUNC tokens, which all went in vain as bears dragged the price lower quickly.
Binance, the world’s most popular crypto exchange, has burned over 1.2B LUNC tokens amidst the 5th batch of Binance burn mechanism on trading fees. This was the first burn since the implementation of the tax cut proposal from 1.2% to 0.2%. The platform has sent 1.26 billion Terra Classic to LUNC burn addresses, including a fee of 2.51 million LUNC.
The LUNC price had surged notably by more than 16% to reach $0.00027496 during the previous trading day. Meanwhile, the Binance burn of 1.25B LUNC failed to induce a significant bullish momentum and hence the price remained heavily deflated.
LUNC price has maintained a notable lower trend line for over a week, and therefore prices may initially consolidate for some time. Therefore, a significant downside could be imminent as the bears appear well positioned. However, after testing these levels, a further decline to lower support could result in catapult action.
Meanwhile, the burning mechanism does not appear to have induced significant bullish momentum over the asset. As of today, Binance has already burned more than 5.5 billion LUNC, which dropped below 3 billion due to a drop in the tax burn policy, while the price remained largely stagnant.
Hence, TeraClassic price may continue trading under a prolonged bearish confinement which may force the price to drop to lower support soon.
