Terra Luna Classic Price Continues Downward Trend Despite Reaching Key Burn Milestone

Terra Luna Classic, also known as LUNC, has seen its price drop to a low of $0.00007045 this week, marking its lowest level since August 2024 and a decline of 55% from its December highs.

Terra Luna Classic Burn Milestone

According to recent data, the Terra Luna Classic network has surpassed the 400 billion burn milestone. Over 400.6 billion LUNC tokens have been incinerated so far, with the trend continuing. In the last seven days alone, 1.45 billion tokens were burned, leaving 6.5 trillion coins still in circulation.

Terraform Labs, which filed for bankruptcy protection in 2024, remains the largest contributor to token burns, having destroyed over 259 billion tokens as part of a U.S. court order tied to its bankruptcy proceedings. Other major contributors to the burn include Binance, DFLUNC, LunaticsToken, and MEXC.

Impact of Token Burns on Price

In theory, burning reduces the circulating supply of a cryptocurrency, which could increase its price by making the remaining tokens rarer. However, this has not been the case for Terra Luna Classic, which continues to see its price decline.

Reasons for LUNC’s Price Decline

One reason for LUNC’s price decline is the increasing number of holders selling their coins. The staking ratio has dropped from nearly 16% in November to 15% today, indicating reduced investor commitment.

Additionally, data shows that more LUNC tokens are being moved to exchanges. A recent influx of substantial Terra Classic transfers, each exceeding 1 billion tokens, has been seen moving into Cryptex. According to a top LUNC validator, these flows can be attributed to recent market volatility and strategic consolidation by investors.

Recent market volatility and strategic consolidation by investors have led to the movement of LUNC tokens to exchanges.

Terra Luna Classic Technical Analysis

The daily chart shows that Terra Luna Classic peaked at $0.0001793 in December before crashing by over 57% to $0.000076. The coin has broken below the ascending trendline connecting the lowest levels since August 2024.

Terra Classic’s 50-day and 100-day Exponential Moving Averages have also made a bearish crossover. The coin has formed a head and shoulders chart pattern, while oscillators like the Relative Strength Index and the MACD indicators have continued falling.

Outlook for LUNC Price

Given these factors, the LUNC price is likely to continue its downtrend, with the next key target being $0.000050, its lowest point in 2024. This bearish outlook would be invalidated if the price rises above the ascending trendline.

Terra Luna Classic remains a significant player in the crypto industry, with a market cap of over $450 million. Despite its struggles, it continues to be a closely watched cryptocurrency.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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