Terra Classic (LUC) remains the best crypto in the Top 100 after +80% in 5 hours yesterday


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Investing.com – The cryptocurrency literally exploded higher yesterday, from a low of 0.0001819 around 7 a.m. to a high of $0.0003259 by midday, up almost 80% in about 5 hours.

And despite a correction, the price of Luna Classic, currently at $0.0003030, still shows a gain of more than 50% over 24 hours. It is at the time of writing the best performing cryptocurrency in the Top 100. The strong rise recorded yesterday also allowed LUNC to regain its place in the Top 50 of the most important cryptocurrencies by capitalization, currently at the 32nd position.

Recall that Luna classic (LUNC) is the “surviving” blockchain cryptocurrency that saw its TerraUSD and terra (LUNA) tokens collapse earlier this year.

Regarding the explosion in the price of this cryptocurrency with a less than rosy past, it is directly linked to an announcement by the Binance cryptocurrency exchange platform, the largest in the world.

The latter has indeed unveiled a plan to reduce the supply of the token. This plan, called a “supply reduction plan”, aims to “burn” 1.2% of each LUNC transaction.

According to a statement, Binance will destroy the equivalent of transaction fees when a trader sells or buys LUNC. Traders on Binance can choose to voluntarily apply the 1.2% burn fee.

However, some observers have pointed to Binance’s pricing that the biggest traders enjoy trading fees of only 0.1% to 0.02% for big traders, much less than the 1.2% burn option. Consequently, this will only apply for small trades, with probably a more limited impact on the LUNC than its rise yesterday suggests.

Interestingly, yesterday’s bullish outburst in Terra Classic took many investors by surprise, knowing that sentiment was overwhelmingly bearish following news that Interpol had issued a “red notice” against Terra founder Do Kwon.

In this regard, it should be noted that Do Kwon responded to this red notice via a tweet yesterday, claiming that he makes “zero effort to hide”, specifying that he goes out in the street and shopping malls, and claiming to doubt that Security cameras haven’t spotted him yet.

Finally, with regard to the thresholds to watch in the short term on the LUNC charts, it should be noted that a short-term support is emerging around $0.0002900. However, one can also spot an important resistance near 0.00032/$33.

Terra Classic (LUNC) - H4 Chart



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