Terra Luna Classic (LUNC) has been experiencing a steady uptrend since July, with the exception of a market-wide crash on August 5th. The recent development of the Terraform Labs (TFL) case and the subsequent liquidation of the company has led to a unique opportunity for the LUNC community. Avalanche, seeking to buy back all the $60 million AVAX tokens purchased by the Luna Foundation Guard (LFG), has provided a significant influx of funds.
The Potential Impact of AVAX Buyback on LUNC Price
While the AVAX price has surged following the announcement, the LUNC community is speculating on how the $60 million could impact their token’s value. One possible scenario is that the funds could be used to buy back and burn LUNC, which could significantly reduce the circulating supply and drive up the price.
If $60 million were used to purchase LUNC at its current price of $0.00008898, it would equate to approximately 671 billion coins, or about 12% of the total circulating supply. To maintain the current market cap with 12% of the supply gone, the price would need to adjust upward by 17%, reaching $0.0001.
The potential for a significant price increase, combined with the hype surrounding the coin burn, could fuel Fear of Missing Out (FOMO), leading to a cascading effect that drives LUNC prices even higher.
Also Read: Terra Luna Classic (LUNC) Eyes Significant Rally As Analysts Predict 545% Surge
A Bullish Outlook for LUNC
The Terra Luna Classic price chart reveals a clear ascending channel pattern, indicating a gradual uptrend within well-defined support and resistance lines.
This bullish trend, combined with the consolidation near the middle of the channel, suggests a potential upward move to $0.00015.
- Key Support and Resistance Levels:
- 0.00008400: The lower boundary of the channel is acting as a strong support.
- 0.0001500: The upper boundary of the channel is a key resistance zone.
As long as the LUNC price remains within the ascending channel or breaks above it, the long-term outlook remains bullish. Targeting the $0.0001500 area provides a good risk-to-reward ratio, with the potential for extended gains if the broader market sentiment turns highly bullish.
The $60 million AVAX buyback presents a significant opportunity for the Terra Luna Classic community. If the funds are used for a buyback and burn, it could have a substantial impact on LUNC’s price. Combined with the bullish technical outlook, the potential for a significant rally exists. However, it’s essential to monitor the market closely and be prepared for potential volatility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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