Despite Binance Burn 1.35 Bln LUNC Chart shows a Bearish Pattern

6月1日

Binance has burned 1.35 billion LLUNC tokens in its 22nd batch of its LLUNC burn mechanism, marking a bearish pattern in the crypto exchange's net burn. The total LLUNC burn by Binance has now surpassed 60 billion, accounting for more than 52% of the total LLUNC burned by the Terra Luna Classic community. The 22nd batch of the LLUNC burn mechanism burned a significant amount of trading fees for the period between April 30 and May 29. Binance has now burned nearly 60.42 billion LLUNC tokens from trading fees on LLUNC spot and margin trading pairs.

Last month, Binance burned 1.4 billion LLUNC tokens. The exchange burned 1.40 billion in trading fees on LUNC spot and margin trading pairs worth $156,362 as trading volumes fell significantly in April. However, trading volumes reversed higher in the last few weeks of May, with prices mostly trading sideways near $0.00012.

LLUNC and USTC prices continue to trade under pressure even after the Binance LLUNC burn due to a recent crypto market selloff, causing Terra Luna Classic ecosystem tokens to pare recent gains. The community narrative has switched to development activity and LLUNC burns in May, bringing back speculation of LLUNC price hitting $0.0002. LLUNC price has rallied over 17% in a month amid buying from spot and derivatives traders, currently trading at $0.000117.

Despite the burning streak by Binance, the token seems to trade in respite to the burn campaign. The memecoin is down by 2.76% technically, LLUNC's daily price chart depicts a bearish symmetrical triangle pattern in the long term. But the Relative Strength Index (RSI) which is at 56.59 gives hope of a trend reversal for long and short term investors alike.