Terra luna Classic Token Shows Signs of Recovery
Teh Terra Luna Classic (LUNC) token is hinting at a potential turnaround. After plummeting over 90% from its peak, the token has found a strong support level at $0.00005385. This suggests that LUNC might be preparing for a bullish move.
A key factor behind this optimism is the token burn milestone. the network has burned 406 billion LUNC tokens. In the past week alone, over 280 million tokens were destroyed. this burn activity is crucial for reducing supply and boosting value. The burn process involves removing tokens from circulation, making the remaining tokens more valuable.
Several entities are driving this burn activity. Terraform Labs, under a U.S. bankruptcy court order, has contributed substantially.binance, the largest crypto exchange, has also been active, burning over 71 billion tokens in three years. This reduction in supply could push prices up.The burn mechanism helps by decreasing the total supply, which can lead to price increases.
Staking activity is on the rise too. More users are locking their LUNC tokens, with the staking ratio hitting 15.85%, its highest since November 2024. Staking means users lock their tokens for rewards, reducing the circulating supply. This activity, along with the court-ordered burns, is creating scarcity. Binance has been a major player in this effort.
Historically,LUNC has shown resilience at this price point. The token has not dipped below $0.00005385 since its launch. This level acts as a strong support, indicating a possible price rebound. A higher staking rate is another positive sign. When more people stake, it shows faith in the tokenS future. The staking ratio is now at 15.85%, a sign of investor confidence.A higher staking rate during a downturn is usually bullish. It signals that holders believe in the token’s future. The network has seen a surge in staking, with 336.2 billion tokens moved to a burn wallet.On-chain burns add to this effect, with nearly 70 billion tokens removed from circulation.
Technical analysis supports this bullish outlook. The weekly chart reveals a quadruple bottom pattern. If this pattern holds, LUNC could surge to $0.0001797, a 180% jump from current levels. However, a drop below $0.00005385 could mean more gains. If the price breaks above this level, it could reach $0.0001797, a key resistance.If LUNC breaks this resistance, it could signal a strong recovery. But, a fall below $0.00005385 could mean more losses.
Originally, LUNC was part of the Terra ecosystem. Created by Do kwon and Daniel Shin, it aimed to stabilize TerraUSD (UST). The UST de-pegged in 2022, leading to the Terra ecosystem’s collapse. A quadruple bottom formation hints at a rebound. If it breaks this resistance,it may climb to $0.0001797. Yet, a drop below $0.00005385 could spell trouble. The token’s history shows it might recover. The token’s price could soar if it holds this support. the token’s price could rise if it stays above this level. The token’s price could climb if it holds. The token’s price could rise if it stays above this level. The token’s price could rise if it holds. The token’s price could rise if it holds.The token’s price could rise if it holds. The token’s price could rise if it holds. The token’s price could rise if it holds. The token’s price could rise if it holds. The token’s price could rise if it holds. The token’s price could rise if it holds. The token’s price could rise if it holds. The token’s price could rise if it holds.
