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LUNC is burning, but why isn’t it fueling a prize pump, exploring the reasons

Some time has passed since the launch of the highly anticipated Classic Earth [LUNC] 1.2% tax reduction protocol, which many believed had the potential to change the fate of LUNC in the long run.

To date, over 18 billion LUNC tokens have been burned, representing over 0.268% of the total token supply.

Meet AMBCrypto Terra Classic Price Prediction (MONC) for 2023-24

Interestingly, over five billion tokens have been burned with the tax, which is a positive sign that the burning protocol is working properly. Another great good news has arrived for MON last month, when Binance announced that it would also implement the 1.2% tax reduction protocol. Binance delivered on its pledge and, by far, burned over eight billion tokens alone.

Despite all these positive developments, things were not going well for LUNC, as according to CoinMarketCapLUNC is down more than 6% in the past week.

At press time, the altcoin was trading at $0.0002792. Despite the lackluster performance, surprisingly, several on-chain metrics were in LUNC’s favor and pointed to a possible upside in the coming days.

It looked promising

In addition to the developments mentioned above, MON also made it to the Top 10 list by LunarCrush AltRank, which is a bullish signal, giving investors hope for better days ahead.

Interestingly, several chain measures also painted a similar picture. For example, after declining, LUNC development activity increased last week, which is a positive sign for a blockchain. His popularity also increased with the surge of his social dominance on October 12.

Source: Santiment

Not only that, but the positive sentiment of LUNC also followed the same path and recorded an increase, representing investor confidence in the token.

Source: Santiment

However, after rising, the token’s volume has slightly decreased over the past day. This could be seen as a setback for LUNC.

The ghost of the past might still haunt

Additionally, LUNC’s daily chart revealed that things weren’t as good as they looked. A few market indicators suggested that the bears were brewing, which could lead to a further decline in MONthe price.

LUNC’s Relative Strength Index (RSI) and Chaikin’s Money Flow (CMF) declined over the past week and were resting at a neutral stance.

The MACD reading revealed an ongoing struggle between the bears and all the bulls, with the former having a slight advantage.

Additionally, according to the exponential moving average (EMA) ribbon, the gap between the 20-day EMA and the 55-day EMA seemed to be narrowing over the past few days. Traders should therefore exercise caution before doing anything.

Source: Trading View