- Terra Luna Classic (LUNC) is experiencing a strong price surge driven by aggressive token burns, increased staking, and a confirmed technical breakout.
- With bullish market sentiment and reduced circulating supply, LUNC could see further gains, potentially reaching the $0.0001 resistance level.
The crypto market has been on a broad upswing, and Terra Luna Classic (LUNC) is riding that wave with impressive strength. Up 2.58% in the last 24 hours, LUNC is now trading at $0.000070, showing signs of a potential breakout as market sentiment turns overwhelmingly positive. But beyond the general bullishness in the market, what exactly is driving LUNC’s rally?
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Massive Token Burns Are Reducing Supply
One of the strongest catalysts behind LUNC’s upward momentum is its aggressive burn mechanism. In just the last week, over 205 million LUNC tokens were permanently removed from circulation. Since the burn initiative started in May 2022, the total has reached an astonishing 408 billion tokens. This consistent reduction in supply is gradually reshaping the tokenomics of LUNC.
A significant contributor to this effort is Binance, which has eliminated more than 72 billion LUNC by burning 50% of its LUNC spot and margin trading fees. In April alone, Binance burned 521.9 million tokens, slightly less than the 760 million burned in March, but still a powerful supply-reducing move.
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Staking Strengthens the Bullish Case
Staking is another important force behind LUNC’s rising price. Currently, over 1.038 trillion LUNC tokens—around 15% of the circulating supply—are staked. That’s a noticeable increase from last year’s 13% ratio, and it signals growing long-term holder confidence.
By locking up tokens in staking, the available liquidity in the market decreases, putting additional upward pressure on the price. The combination of consistent burns and high staking rates is creating a double squeeze effect on LUNC’s circulating supply.
Technical Breakout Adds Fuel to the Fire
From a chart perspective, LUNC has broken out of a descending trendline that had capped its gains since January. This breakout also invalidates a previously bearish descending triangle pattern. More importantly, the token is now trading above its 50-day moving average, a clear bullish indicator.
Momentum indicators such as the MACD and the Awesome Oscillator have both entered positive territory, suggesting sustained buying pressure. With the next key resistance level at $0.0001, LUNC could see another 60% gain if the momentum continues.
In short, Terra Luna Classic’s price surge is not just a product of a bullish market. It’s being powered by strategic burns, robust staking, and a confirmed technical breakout. If these trends hold, LUNC may be gearing up for an even stronger rally.
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