Luna Classic (LUNC) initiated a bounce as a result of a Binance tax implementation on Monday. So far, the price has increased by 50%, breaking out from an important resistance in the process.
Updated 28 Sept. 06:00UTC: Terra boss Do Kwon took to Twitter to deny allegations that he “cashed out” $67 million worth of Bitcoin just a day after a warrant was issued for his arrest. “There is no “cashout” as alleged, I haven’t used KuCoin or OKX in at least the last year, and no funds of tfl, lfg or any other entities have been frozen,” he tweeted.
Updated 26 Sep. 21:00UTC: Crypto exchange Bitfinex has stated that it is aware of the LUNC 1.2% tax burn and that its team is “reviewing the required changes needed to support this process,” hinting at the possibility that the exchange could also implement the change.
Binance announced that it has implemented a burning mechanism in order to burn all trading fees on LUNC spot and margin trading. Previously, such a burn mechanism was only implemented in deposits and withdrawals.
Now, all the trading fees will be sent to this address, which is considered the LUNC burn address. Fees will be collected in either USDT, BUSD or BNB. Then, they will be converted to LUNC in order to be deposited to the address.
Binance also pledged to release a weekly burn report each Tuesday at 00:00UTC. The first calculations for the burn records have yet to be released. They will be updated on Oct. 3, exactly a week after the announcement.
Despite this positive announcement from Binance, it is worth mentioning that the co-founder of Terra, Do Kwon is still on the run from authorities, and Interpol has filed a “Red Notice” for his apprehension.
LUNC price finally bounces
LUNC has been decreasing since reaching a high of $0.00059 on Sept. 8. The downward movement has followed a descending resistance line and has led to a low of $0.000179 on Sept. 25.
Afterward, LUNC initiated a significant upward movement the next day and has so far increased by 50%.
Despite this increase, the price is at a confluence of important resistance levels, a breakout above which is required for the trend to be considered bullish.
LUNC is facing resistance from the $0.0003 resistance area, the 0.382 Fib retracement resistance level and the RSI is facing resistance from the 50 line (red circle).
So, a breakout above these levels would be required to confirm the bullish reversal and the breakout from the resistance line. Therefore, the daily close today is extremely significant, since it could confirm both a breakout or a rejection.
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