Terra Luna Classic (LUNC) Price Analysis and Prediction

Terra Luna Classic (LUNC) price continued trading lower this week, reaching a new low of $0.00010 on Friday, down 42% from its December peak.

Despite the ongoing sell-off, several positive on-chain metrics may help support a recovery in LUNC’s price once the market recovers.

Key Points

• Terra Luna Classic (LUNC) price dropped to a new low of $0.00010 this week.

• On-chain data shows that 341 million LUNC tokens were burned in the past seven days.

• Binance remains the largest LUNC burner, having incinerated almost 70 billion tokens.

• A higher staking ratio is a positive sign for a cryptocurrency, as it reduces the number of tokens available for sale on the market, thereby easing selling pressure.

Terra Luna Classic (LUNC) price analysis: Ranging lower

LUNC price peaked at $0.0001790 in December before erasing some of those gains to reach the current $0.00010 level. This retreat occurred amid ongoing weakness in the broader crypto market.

Most recently, the token broke below the key support at $0.0001054, which was the neckline of a small double-top chart pattern. Additionally, LUNC has moved below both the 50-day and 200-day moving averages.

On a positive note, the coin has formed a cup and handle pattern, a popular bullish continuation indicator. The ongoing pullback is likely part of the handle formation. Therefore, it’s possible that Terra Luna Classic’s price will rebound as long as it holds above the key support level at $0.00009060.

If this recovery materializes, the initial target to watch will be the double-top level at $0.000122, followed by the upper side of the cup at $0.0001310 and last December’s high of $0.000179. A return to last month’s high would represent a 73% jump from the current price.

Relative Strength Index (RSI) on the daily chart is now trading below the 30 level, which is considered oversold territory. This technical indicator may help cushion the downside and support a recovery in LUNC’s price.

Terra Luna Classic latest news and updates

The Terra community is set to vote on Proposal 11642, which aims to burn the remaining LUNC tokens in the community pool.

If the proposal passes, around 213 billion LUNC tokens will be burned. The community burned roughly 397 billion LUNC tokens in total last year.

According to data from LUNC Metrics, the Terra network has burned over 397 billion tokens since May 2022.

In the past seven days alone, 341 million tokens have been burned, with the number continuing to grow. On January 10, the daily burn jumped to over 686 million.

Binance remains the largest LUNC burner, having incinerated almost 70 billion tokens. Meanwhile, DFLUNC Protocol and LunaticsToken have burned over 2 billion and 1.9 billion LUNC, respectively.

These token burns have helped reduce LUNC’s circulating supply over the past two years to 6.50 trillion. In theory, token burns boost a cryptocurrency’s price by reducing supply and increasing the value of the remaining tokens.

Moreover, recent data shows that investors have increased their staked tokens over the past few days. The staking ratio has risen to 15%, or 981 billion LUNC tokens, up from last week’s low of 14.8%.