🌎 LUNC Price Falls Amid Token Burns

Terra Luna Classic Price Analysis: What’s Next for LUNC?

Terra Luna Classic’s price has been under pressure this week, mirroring the performance of Bitcoin and other altcoins. The cryptocurrency dropped to its key support level of $0.00010, marking its lowest point since December 20 last year. This decline represents a 42% slip from its December high.

Terra Luna Classic Token Burns

A potential catalyst for the LUNC price is the ongoing token burns, which have accelerated over the past few months. The 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.

Other notable token burners include DFLUNC Protocol and LunaticsToken, which 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.

Increased Staking Ratio

In addition to token burns, 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%. 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.

Tips for investors:

Keep an eye on the ongoing token burns and their impact on LUNC’s circulating supply.
Monitor the staking ratio and its potential effect on the cryptocurrency’s price.
Watch for a potential rebound in LUNC’s price once the ongoing sell-off ends.

LUNC Price Analysis

The daily chart shows that LUNC price peaked at $0.0001790 in December before erasing some of those gains to reach the current $0.00010 level. 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.

Potential price targets to watch: