Terra luna Classic Faces Potential Price Slide Amid Falling Volume and Negative Trends
Terra Luna Classic (LUNC) faces possible further price declines as it’s exchange volume has decreased, and a concerning pattern has emerged. It is indeed currently trading at $0.000055, just a tad above this week’s low of $0.000050.
According to CoinGecko, daily trading volume has dipped to $9.4 million, showing weaker demand amid the broader crypto market’s downturn. Meanwhile, the futures market’s open interest has shrunk to $8.46 million, down from over $15 million a month ago. Lower volume and open interest often signal potential price declines.
Further, LUNC’s weighted funding rate has turned negative for the first time since June 24, indicating that investors expect its future price to fall below current levels. there are also signs of investors moving LUNC to exchanges, which is usually a step before selling.
However, LUNC is still one of the most deflationary tokens, with weekly burns reaching over 365 million tokens, making the total burn exceed 411 billion. This reduction in supply can generate positive sentiment among investors.
The technical picture paints a bearish scene. LUNC has crashed this year, dropping from a high of $0.0001790 in November to $0.000050. It has moved below the 50-day and 100-day Exponential Moving Averages.
A bearish descending triangle pattern is also visible, suggesting a possible strong price slide. If LUNC breaks below $0.00005078, it could further test this year’s low of $0.00004695.
