The Terra Classic Foundation has entrusted 30 million LUNC to hexagon.io. Despite the impressive amount entrusted, LUNC is still bearish.
The Terra Classic Foundation has announced continued support for Galaxy Finder and the Space Station. In a recent announcement, the foundation revealed a large-scale authorization of 30 million LUNC tokens to hexagon.io.
The Terra Classic Foundation stated on its official X page (formerly Twitter),
“We have entrusted an additional 30 million dollars of LUNC to @hexxagon_io for the operation and maintenance of Galaxy Station (https://station.hexxagon.io) and Galaxy Finder (https://finder.terra-classic.hexxagon.io).”
This delegation is crucial as it guides Hexagon in managing its ecosystem. Since last year’s collaboration of the L1 Joint Task Force with Hexagon, it has been crucial in the development and maintenance of probes and galaxy stations.
The Galaxy Station is the interactive and governance center of the Terra Classic ecosystem. It helps users navigate the Terra Classic network, including transactions, addresses, and other activities.
According to the recent delegation, the total amount delegated to the platform is 930 million LUNC. The delegation team stated that they are fully committed to the continued security and development within the Terra Classic ecosystem.
Therefore, developing a solid, user-centric infrastructure for a better experience is crucial.
Impact on LUNC?
It is worth noting that a large-scale delegation can impact price charts in the short and long term. Despite the team’s trust and confidence in the network, which can attract investors, AMBCypto’s analysis indicates that there is still market sentiment for LUNC.
At the time of writing, LUNC has dropped by 0.70 in the past 24 hours, with a trading price of $0.0000801. Additionally, it has also dropped by 1.47% in the past seven days.
However, the trading volume has increased by 8.02% in the past 24 hours, reaching $15 million.
Our analysis also shows a strong bearish trend. Looking at the directional movement index of LUNC, the 30 negative index (red) is higher than the 12 positive index, indicating a strong downward trend.
The Aroon line further confirms this, with the 35-point Aroon Down (blue) above the Aroon Up line, a bearish signal.
Furthermore, Coinglass data shows that the open interest in LUNC has steadily declined over the past seven days, dropping from a high of $8.89 million to $6.4 million at the time of writing.
The decrease in open interest indicates holders are closing positions rather than opening new ones.
Finally, in the past 24 hours, the liquidation volume for long positions of LUNC was higher at $36,000, with zero liquidation volume for short positions.
The same liquidation trend appeared in the past seven days, indicating that the market sentiment is fundamentally bearish.
Will the delegation lead to an increase in price?
While the 30 million delegation has the potential to have an economic impact on the price chart, LUNC is still in a downward trend.
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If the bearish trend continues, LUNC will break the key support at $0.0000793 and further drop to around $0.0000747.
However, if the market experiences a rebound after the delegation, LUNC will rise to the next significant resistance level of around $0.0000837.
