- Terra Luna Classic (LUNC) has stalled at a crucial support level of $0.000060, despite a significant increase in its weekly burn rate and community-driven efforts to improve on-chain liquidity.
- The token’s price remains under pressure, with further downside risk if it breaks key support levels.
The price of Terra Luna Classic (LUNC) has found itself at a crucial support level, consolidating at $0.000060. Despite a significant increase in the weekly burn rate and an ongoing community vote, the token’s price has struggled to regain upward momentum. LUNC has dropped by more than 66% from its high in December, reflecting the volatility within the market.
Rising Burn Rate
One of the more optimistic aspects for LUNC holders is the increasing burn rate, as more tokens are being incinerated in an effort to reduce the total circulating supply. Over the past week, more than 727 million tokens were burned, pushing the cumulative total to a staggering 407 billion tokens destroyed since the project’s inception. The bulk of these burns came from the Luna Foundation Guard (LFG), which burned 211 million tokens on Wednesday alone, along with over 1.7 billion TerraClassic USD (USTC) tokens.
BREAKING: The @LFG_org wallet has been BURNED! 🔥🤯
211,577,500 $LUNC
1,754,725,793 $USTC are now gone!Are we about to witness the greatest comeback in #Crypto history. Stay tuned! 💎🤲🏻 #LuncBurn #Binance @cz_binance pic.twitter.com/hWADqHtxBa
— Mr. Diamondhandz1💎 (@MrDiamondhandz1) April 2, 2025
This aggressive burning strategy is a key component of Terraform Labs’ effort to revitalize the Terra ecosystem. The Luna Foundation Guard was established to support the growth of the Terra ecosystem, particularly its stablecoin, USTC, with the goal of improving the overall health of the Terra network.
On-Chain Liquidity Plans
In addition to the burning activities, there are ongoing efforts within the Terra Luna Classic community to introduce on-chain liquidity for USD Coin (USDC). A phased approach has been proposed to establish USDC/LUNC liquidity pools, which would improve decentralized finance (DeFi) utility, reduce the reliance on centralized exchanges, and potentially increase the token’s burn rate. The strategy aims to create arbitrage opportunities and boost tax volume, further contributing to LUNC’s long-term growth.
Technical Analysis
Despite the positive news surrounding burns and liquidity efforts, LUNC’s price action remains largely stagnant. The token has stalled at a critical support level, which it has struggled to break below since July of last year. This level has proven to be a strong floor, with bears hesitant to push LUNC lower.
Currently trading below the 50-day moving average and a descending trendline, LUNC is showing signs of a bearish continuation pattern, known as a descending triangle. If the price falls below the current support level, the next key support zone lies at $0.000047, representing a potential 22% drop from current levels.
While Terra Luna Classic has shown some positive signs with its burn rate and community-driven initiatives, the price of the token remains under pressure. The upcoming days will likely reveal whether LUNC can maintain its crucial support level or if it will face further downward pressure in the market. The success of ongoing initiatives, particularly the introduction of liquidity pools and continued burns, will be vital in shaping LUNC’s price outlook.