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Terra Luna Classic Token Surges as Burn Rate Accelerates
The Terra Luna Classic (LUNC) token has recently crossed a critical resistance level, setting the stage for potential price growth as the network approaches two major milestones. The token’s price climbed to $0.00006430, marking its highest level since March 28, and has surged by nearly 40% from its lowest point this year.
Burn Rate Drives Supply Reduction
The upward momentum in LUNC’s price is largely attributable to the network’s increasing burn rate. Over the past seven days, approximately 205.3 million LUNC tokens have been burned. Since May 2022, the total number of burned tokens has reached 408.2 billion, reducing the circulating supply to 5.45 trillion. If this burn rate continues, the total burned tokens could surpass 410 billion by early next month.
Next week, additional LUNC tokens are expected to be burned as Binance conducts its monthly token burn. Binance has emerged as the largest contributor to LUNC token burns, having destroyed over 72 billion tokens to date. The exchange burns 50% of its spot and margin trading fees associated with LUNC transactions. However, the actual number of tokens burned each month varies depending on trading volume. For instance, Binance burned 521.9 million tokens earlier this month, down from 760 million in the previous month.
Increased Staking Activity
Another positive indicator for LUNC is the growing number of tokens being staked. Currently, over 1.038 trillion LUNC tokens—approximately 15% of the circulating supply—are staked. This marks a significant increase from 13% during the same time last year, signaling stronger long-term confidence among holders.
LUNC Price Technical Analysis
Recent price movements indicate a strong rebound for LUNC. The daily chart shows that the token bounced off a key support level at $0.000057, which had previously acted as a support zone in July, August, February, and March. The price has now broken above a descending trendline that connected the highest swing points since January 20, effectively invalidating a descending triangle pattern.
Additionally, LUNC’s price has crossed above its 50-day moving average, further bolstering bullish sentiment. Indicators such as the Awesome Oscillator and the MACD have moved above the zero line, signaling bullish divergence. If this momentum persists, the token could rally to its next key resistance level at $0.0001, representing a potential 60% gain from its current price.
Key Takeaways for Investors
For those interested in cryptocurrency investments, LUNC’s recent price surge and network developments provide several insights:
- Burn Rate Acceleration: The consistent reduction in circulating supply through token burns could positively impact LUNC’s price over time.
- Staking Growth: Increased staking demonstrates stronger holder confidence, which may signal long-term price stability.
- Technical Indicators: Positive signals from moving averages, oscillators, and resistance levels suggest further upward momentum is possible.
As the Terra Luna Classic network continues to burn tokens and attract stakers, the token’s price trajectory remains an important area to monitor for crypto traders and investors alike.
