🌎 Terra Luna Classic Price Surges

Terra Luna Classic Price Surges Amid Network Milestone and Ongoing Token Burns

The Terra Luna Classic (LUNC) price has seen a significant surge, rising for five consecutive days and crossing an important resistance level as the network nears a crucial milestone.

On February 11, the LUNC token reached a high of $0.00007610, up by 56% from its lowest level this year. This recent recovery aligns with the performance of most altcoins, which rebounded after bottoming on Monday last week.

Token Burns Drive Value Creation

A potential catalyst for the Terra Classic price is the ongoing burning action in the network. According to metrics data, over 628 million LUNC tokens have been burned in the last seven days. These burns have brought the total LUNC burned since inception to 402.78 billion, meaning that the figure will cross the 402 billion level later this month.

Token burns help to create value for a cryptocurrency by reducing the number of coins in circulation. The LUNC community hopes that the burning and staking momentum will ultimately help to address the TerraClassicUSD (USTC) debt crisis and help it to regain its peg.

Top Token Burners

Binance has grown to become the biggest LUNC burner, incinerating over 70.8 billion tokens. The other top burners are:

DFLUNC Protocol: 4.52 billion tokens
LunaticsToken: 1.97 billion tokens

LUNC Price Analysis

The daily chart reveals that the LUNC token price bottomed at $0.00004690 last week, where it formed a hammer candle. A hammer comprises a long lower wick and a small body, and is often a highly bullish pattern.

The LUNC price has crossed the upper side of the falling wedge pattern, which has two falling and converging trendlines, often leading to a strong rebound. It has also jumped above the key resistance point at $0.00007140, the lowest swing since September 5.

As a result, the token will likely keep rising as bulls target the key resistance point at $0.0001025, the 38.2% Fibonacci Retracement level, about 40% above the current level. A drop below the support at $0.00005525 will invalidate the bullish view.