Binance change caused crash. The price of Terra Classic (LUNC) has been boosted in recent days by rumors that the second exchange in the world, Coinbase, may buy and list the token. According to NewsBTC, the rumor originated from an anonymous source in the Terra Classic community. However, the credibility of the rumor is beyond doubt. Nevertheless, the community seems to believe the rumor that Coinbase approved the purchase of $245 million in LUNC and left the listing on the exchange on January 3.
The price went from a low of $0.000125988 on December 22 to a three-week high of $0.000185499 on December 22. 27. In this way the token of Terra Luna saw its price increase by around 46%, bucking the current market trend. However, the euphoria ended today with Binance when the crypto exchange announced that it is making changes to the burning Terra Classic trading currency.
Binance said that following the recent developments outlined in Proposition 10983 and Proposition 11111, it will burn 50% of LUNC tokens in the trading limit instead of 100% starting in December 2022. In doing so, Binance is following the community plan that LUNC will be converted into a development currency.
Therefore, the change of Binance is made according to the intention of the community to make it easier to reduce the supply of LUNC and according to what they agreed. To allow time for this new update to be implemented, Binance will delay sending LUNC trading fees until January 3, 2023.
“Binance will continue to work with the community to support the implementation of this new plan, and if for some reason this is not possible, Binance will consider removing the light offering in the future,” the exchange added.
Is LUNC Price Ready for More Profits?
Since the December 27 high, LUNC’s price has already lost about 16% of its price appreciation. At press time, Terra Classic is trading at $0.000157195, down 11% in the last 24 hours. Business value during the same period was $245 million, down -1.4% from the previous period.
A look at the 1-day chart reveals that on Boxing Day, Terra Classic‘s price managed to break out of the downtrend channel that has persisted since October. Today’s correction may represent a test of the move, so traders should keep an eye on the $0.0001406 area. Support can be provided by the 50-day moving average (SMA), which sits at $0.000162919. Otherwise, the 200-day SMA at $0.000179240 should be a strong decision as the next resistance for Terra Classic price.
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