Terra Luna Classic Crashes 11% After This Binance Change

The Terra Classic (LUNC) price has been boosted in recent days by a rumor that the world’s second-largest exchange, Coinbase, might buy and list the token. As NewsBTC reported, the rumor originated from an anonymous source in the Terra Classic community.

However, the credibility of the rumor is more than questionable. Nevertheless, the community seemed to believe the rumor that Coinbase has approved the purchase of $245 million in LUNC and will make the listing on the exchange public on January 3.

The price subsequently rose from a low of $0.000125988 on Dec. 22 to a three-week high of $0.000185499 on Dec. 27. With this, the Terra Luna predecessor token saw a price increase of around 46%, bucking the current market trend.

However, the euphoria was dampened today by Binance after the crypto exchange announced that it is making changes to the Terra Classic trading fee burn.

Binance stated that following recent developments as outlined in proposal 10983 and proposal 11111, it will burn 50% of LUNC spot and margin trading fees instead of 100% starting in December 2022. By doing so, Binance is following the community’s proposals that LUNC burn will be converted into a development fund.

Binance’s change is thus done in line with the community’s intent to further reduce LUNC supply and in line with what they have agreed upon. To allow time for these new updates to be implemented, Binance will delay sending out the LUNC trading fee burn postings until January 3, 2023.

“Binance will continue to work with the community to support the implementation of this new plan, and if for any reason this is not possible, Binance will consider removing the burn contribution in the future,” the exchange added.

LUNC Price Poised For More Gains?

Since the high on December 27, the LUNC price has already lost about 16% of its price appreciation again. At press time, Terra Classic was trading at $0.000157195, down 11% over the last 24 hours. The trading volume within the same period was $245 million, down a modest -1.4% from the previous period.

A look at the 1-day chart reveals that on Boxing Day, the Terra Classic price managed to break out of a downtrend channel that has persisted since October. Today’s correction could represent a retest of the move, so traders should keep an eye on the $0.0001406 area.

Support could also be provided by the 50-day simple moving average (SMA), which sits at $0.000162919. Otherwise, the 200-day SMA at $0.000179240 should be decisive as the next resistance for the Terra Classic price.

Featured image from The VR Soldier, Chart from TradingView.com