- Terra Luna Classic (LUNC) has surged by 56% in five days, driven by ongoing token burns that have reduced supply to nearly 403 billion, with Binance leading the burn initiative.
- If the bullish momentum continues, LUNC could target $0.0001025, but a drop below $0.00005525 may invalidate the upward trend.
Terra Luna Classic (LUNC) has experienced a significant price surge over the past five days, gaining substantial traction among traders and investors. The cryptocurrency crossed a crucial resistance level as the total burned supply of LUNC nears the 403 billion milestone. This recent rally aligns with a broader altcoin recovery, suggesting that LUNC could be on the path to further gains.
LUNC’s Impressive Rally
On February 11, LUNC reached a high of $0.00007610, marking a 56% increase from its lowest level this year. The uptrend coincides with a rebound seen across various altcoins, which bottomed out last Monday before beginning to recover. A key factor driving this positive momentum is the ongoing burning of LUNC tokens, a process that reduces supply and potentially increases value over time.
Burning Mechanism Driving Demand
LUNC Metrics data reveals that over 628 million LUNC tokens have been burned in the past seven days alone. Since its inception, the network has seen a total of 402.78 billion LUNC tokens incinerated, and the figure is expected to surpass 403 billion later this month.
Binance has played a major role in this burning process, having destroyed over 70.8 billion tokens, making it the largest contributor. Other significant burners include DFLUNC Protocol and LunaticsToken, which have burned 4.52 billion and 1.97 billion tokens, respectively. This ongoing burn initiative fuels optimism that LUNC’s decreasing supply could drive up its value, particularly if the community remains committed to staking and further burns.
Can LUNC Regain Its Former Glory?
The LUNC community is hopeful that these burns will help stabilize the ecosystem and potentially contribute to resolving the TerraClassicUSD (USTC) debt crisis. USTC also saw a sharp rise, climbing over 21% on Tuesday to $0.01597, though it still requires an astronomical 6,100% increase to reclaim its $1 peg.
Technical Analysis: What’s Next for LUNC?
A closer look at the daily price chart indicates that LUNC recently bottomed at $0.00004690, forming a bullish hammer candle pattern. This pattern, along with the token’s breakout above the falling wedge formation, suggests a potential continued uptrend. Additionally, LUNC has surpassed a key resistance level at $0.00007140, which was the lowest swing since September 5.
If the bullish momentum continues, the next target for LUNC is around $0.0001025, which represents the 38.2% Fibonacci retracement level—approximately 40% above the current price. However, a drop below the support level of $0.00005525 could invalidate the bullish outlook and lead to a potential price correction.
Conclusion
LUNC’s recent price rally, coupled with aggressive token burns, has renewed investor optimism. While the bullish outlook remains intact for now, the market’s volatility could impact future gains. If LUNC can maintain its upward trajectory and sustain its burn strategy, it may continue to see positive price action. However, traders should remain cautious and monitor key support and resistance levels for potential trend reversals.
