June has been a brutal month for cryptocurrencies, with Bitcoin and Ethereum experiencing significant drops. Terra Classic (LUNC) hasn’t been spared either, facing a sharp reversal from $0.000125 and plunging 36% to $0.000079. But can buyers stage a comeback before month-end, or will the downtrend continue?
Stuck in a Range, LUNC Seeks Support
For the past two months, LUNC has been stuck in a sideways trend, bouncing between $0.000122 and $0.000086. This lack of volatility suggests indecision among buyers and sellers. However, the recent drop saw LUNC find support at the range bottom ($0.000086), with a long-tailed rejection candle on Tuesday hinting at buyer intervention.
Community Backs Burn Tax Reform, Long-Term Impact Expected
In a positive development, the Terra Luna Classic community overwhelmingly approved proposal 12114, which revises the LUNC burn tax distribution. This new plan allocates 80% of the 0.5% burn tax to burning tokens, and the remaining 20% goes to community and oracle pools. While immediate block rewards might decrease, the change is expected to boost long-term staking rewards. This could attract long-term investors and potentially increase the token’s value through reduced supply.
Also Read: Terra Luna Classic Shifts LUNC Burn Tax Distribution, Focuses on Oracle
Eyes on a Breakout: Reversal or Consolidation?
If LUNC can break out of the range bottom, it could see a 37% surge to challenge the resistance at $0.00012. However, a confirmed breakout with a daily candle closing above this level is crucial for a sustained upward trend. A successful breakout could lead to an initial target of $0.000173, followed by a potential rally to $0.00025.
If LUNC fails to break above the resistance and encounters continued selling pressure, it could remain stuck in consolidation for weeks or even months. The Bollinger Bands indicator reflects the recent downtrend, while the RSI nearing the oversold zone could signal potential dip-buying opportunities.
The Verdict: Buyer Action Needed for Reversal
The next few days will be critical for LUNC. A decisive move above the range resistance is essential for a bullish reversal. The community-backed burn tax reform offers long-term hope, but buyer action is needed to propel the price upwards in the short term.
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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