🌎 Terra Luna Classic Price Hits Key Support Amid Rising Burns

Terra Luna Classic Price at Key Support Level Amid Rising Burn Rate

Terra Luna Classic (LUNC) has plummeted to a crucial support level, with its daily chart sending mixed signals as the token burn rate continues to soar. As of Thursday, the Terra Luna Classic price was trading at $0.000070, just below the key support level at $0.000054.

Terra Luna Classic Token Burn Rate on the Rise

Data shows that the Terra Luna Classic token burn has continued to rise, reducing the circulating supply. In the last seven days, the network incinerated 382.4 million tokens, bringing the total burns since inception to over 403 billion. Currently, there are approximately 6.49 trillion tokens in circulation.

The number of tokens burned is expected to increase this week as Binance conducts its monthly burn. Binance, the largest cryptocurrency exchange, has been a significant supporter of Terra Luna Classic, incinerating over 70.8 billion tokens to date.

Binance Continues to Support Terra Luna Classic

Binance is also one of the top tier-1 exchanges that continues to list the token and has supported its multiple upgrades. Recently, the exchange backed a minor upgrade by suspending deposits and withdrawals during the process. Notably, Binance is among the top Terra Luna Classic holders, yet the company did not sell its tokens this week. Instead, it sold Ethereum and Solana, indicating its ongoing faith in the network.

Terra Luna Classic: A Remnant of Terra’s Collapse

Terra Luna Classic is the remnant of Terra, one of the biggest collapses in the crypto industry. Terra offered an algorithmic stablecoin that promised double-digit returns before it collapsed, wiping out billions of dollars in value.

LUNC Price Analysis: Mixed Signals

The weekly chart shows that the Terra Luna Classic price has been in a strong bearish trend for the past few years. It dropped to the crucial support level at $0.000054, which it failed to break below in June 2022, September 2023, July 2024, and again this month.

On the positive side, this could signal the formation of a quadruple bottom, a popular bullish pattern. This bottom suggests that short sellers are hesitant to place trades below this level. However, there is also a possibility that the Terra Luna Classic price has formed a descending triangle, a bearish continuation pattern.

A drop below the support at $0.000055 would validate the descending triangle and indicate further downside. Conversely, a breakout above the descending trendline could signal further upside, potentially pushing the price to the 2024 high of $0.0002792, its highest level in December 2023, an increase of approximately 300% from the current level.