LUNC News: In a dynamic turn of events, Terra Luna Classic (LUNC) price extended its weekly loss to over 10% on Tuesday, sparking concerns among investors globally. This bearish movement comes against the backdrop of a stockpile of statistics, including wallets being drained and funds being shifted to exchanges, alongside broader market trends. Here’s a brief collection of potential factors driving the current slumping action and why traders should remain cautious.
LUNC News: Reasons Driving Dip in Terra Luna Classic Price
In an official X post shared by the Terra Luna Classic community, it was revealed that a substantial amount of LUNC funds was being emptied from wallets and being shifted to exchanges. The transfers from individual wallets to exchange hot wallets, such as Binance, Bitkub, Kraken, and Cryptex, have been remarkably high. This has caused market-wide investors to speculate bearishly as the exchange supply for the asset increases.
The recent influx of transfers, each exceeding 1 billion tokens, into Cryptex’s wallet, followed by transfers to other exchanges, was attributed to factors such as:
Market Turbulence Due To DeepSeek’s Emergence
The recent rise of open-source Chinese AI startup DeepSeek has significantly influenced worldwide tech markets. Major stocks such as Nvidia, Microsoft, Meta, and Alphabet, among others, tanked substantially.
Meanwhile, this bearish trend led to a broader market selloff, with even the crypto sector taking the heat. LUNC price tanked alongside renowned assets such as BTC, ETH, and others in recent days as investors took a cautious stand.
Consolidation Amid Shift Of Funds
Meanwhile, the Terra Luna Classic community revealed that the pattern of large transfers from multiple wallets to exchanges has caused a consolidation. This strategic mover, although aimed to raise liquidity, has also risen staking. In turn, the sentiment over price remains uncertain as the market could see unstaking and dumping ahead, emerging as another bearish LUNC news.
Impact Of Terra Luna Classic Burn Tax & Infrastructure
LUNC transactions are always subject to a burn tax, thereby pushing individuals to send smaller amounts in a go. This mover comes as users test the speed and success of transactions before committing larger amounts. As a result, this factor further aligns with the surge of dump transactions to exchanges.
“Large transactions in a single transfer can cause delays or higher processing times on the Terra Luna Classic network due to its infrastructure,” the community added. In response, investors may even look to shift funds to a faster-performing blockchain with a lower burn tax.
How Is LUNC Price Delivering?
At the time of reporting, LUNC price witnessed a 13% drop weekly and is currently sitting at $0.00007618. Further, the monthly chart underscored a crash of 32%.
However, the coin’s 24-hour chart showed a 3% gain in tandem with the broader crypto market trend today. Nevertheless, market watchers continue to monitor the token as its market dynamics shift dramatically amid broader developments, emerging as alarming LUNC news.
The post LUNC News: Here’s What Is Causing Severe Drop in Terra Luna Classic Price appeared first on CoinGape.
