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- More than 1.6 billion Terra Luna Classic were burnt in 7 days to reduce supply.
- LUNC may reclaim the $0.0001 high, a 50% surge if demand matches dropping supply.
The price of the Terra Luna Classic (LUNC) coin is currently experiencing an upsurge amid a broader market recovery. The latest surge coincides with a 1.6 billion LUNC burn implemented in a week. Therefore, investors speculate whether these developments could trigger a 50% rally for LUNC.
Details of the 1.6B LUNC Burn
According to the LUNC burn tracker, approximately 1.6 billion LUNC coins were permanently removed from circulation in the past week. This pushed the total burn count since May 2022 to 402.17 billion.
As detailed in CNF’s recent news piece, crypto exchange Binance is the leading contributor to the LUNC burn initiative. The exchange has permanently destroyed about 70.85 billion coins.
With the latest token burn, LUNC’s circulating supply now stands at 6.50 trillion, slightly below the 6.51 trillion total supply. Historically, large-scale token burns have sparked temporary price rallies. Thus, the 1.6 billion LUNC burn is necessary to create a significant shift in market dynamics.
As of this writing, LUNC price was up 6.3% in the last 24 hours at $$0.00006513, per Market data. The surge is notable, as most cryptocurrencies recorded minimal gains of 1% to 5% in the last 24 hours. However, the surge is yet to be seen in the trading volume, as the metric decreased by 23.9% to $30.2 million.
Citing market sentiment and broader crypto trends, analysts speculate that LUNC could see a 50% price rally or more. Essentially, the Terra Luna Classic price burn mechanism reduces the coin’s supply, creating scarcity. This scarcity has historically led to price surges as demand increases for the coin increases.
A potential partnership with Cardano could also increase LUNC’s prospects, as CNF discussed earlier. Therefore, LUNC can see a 50% rally, particularly in the ongoing bullish market cycle. Investors are always advised to exercise caution as other market factors can influence LUNC’s future trajectory.
Positive LUNC Indicators and Key Price to Watch
As revealed by technical indicators, the Relative Strength Index (RSI) for LUNC has climbed to 43. This indicates a rebound from oversold conditions and increased buying interest.
The Chaikin Money Flow (CMF), another key indicator, remains positive at 0.06, suggesting capital inflows supporting the price recovery.
LUNC is trading in a rising channel, indicating a short-term uptrend. LUNC could see further gains if the price positions above the $0.000065 support level.
Also, the following key resistance level for LUNC is $0.00008, marking a key area for potential breakout confirmation. A successful breakout above $0.00008 might propel LUNC to $0.0001, representing a 52.40% increase over current levels.
However, LUNC faces a potential pullback to $0.00006 if it fails to sustain upward momentum. The $0.00006 price level serves as the immediate support zone.
