Ondo (ondo) 
Terra Luna Classic (LUNC): Signs of Bottoming and Potential for Recovery
The Terra Luna Classic (LUNC) token is showing indications of stabilization after experiencing a dramatic drop of over 90% from its all-time high. The token’s price has consistently found strong support at $0.00005385, a critical level it has not breached since its inception. This price action suggests that the token may be on the verge of a bullish breakout.
Key Catalyst for LUNC Price Movement
One of the major factors influencing LUNC’s price is the ongoing token burns. The network recently reached a significant milestone, burning a total of 406 billion tokens. Within the last seven days alone, over 280 million tokens were removed from circulation.
Breaking down the numbers:
- Approximately 336.2 billion LUNC tokens have been sent to the burn wallet.
- Nearly 70 billion tokens were burned on-chain.
Much of this activity stems from Terraform Labs, which was mandated by a U.S. bankruptcy court to contribute to these burns. Additionally, Binance, the largest cryptocurrency exchange, has played a pivotal role, burning over 71 billion LUNC tokens over the past three years while also supporting network upgrades.
Rising Staking Ratio: A Bullish Indicator
Another optimistic sign for LUNC is the growing number of holders staking their tokens. The staking ratio has surged to 15.85%, its highest level since November 2024. A high staking ratio during a period of declining prices is often considered a bullish signal, as it indicates long-term confidence among investors.
Technical Analysis: Bottoming Signals
The weekly chart for Terra Luna Classic shows that its price recently hit a low of $0.000054. This level has proven to be a strong support zone, as LUNC also failed to drop below it in July and September of last year, as well as in 2024.
Historically, the last time LUNC breached this level was in June 2022, when it briefly dropped to $0.00003440. That decline turned out to be a false breakdown, marking a potential reversal point. Currently, the token’s price action suggests the formation of a quadruple bottom, a pattern often associated with bullish reversals.
If this pattern holds, LUNC could target its next key resistance level at $0.0001797, which was the highest swing price in November last year. Achieving this level would represent a gain of approximately 180% from the current price. However, if the support at $0.00005385 is breached, it could lead to further downside, potentially targeting $0.000034.
A Look Back: The History of Terra Luna Classic
The LUNC token, originally launched as Luna, was created by Do Kwon and Daniel Shin, co-founders of Terraform Labs. The project aimed to develop a stablecoin, TerraUSD (UST), through an algorithmic mechanism tied to Luna. However, in May 2022, UST lost its peg to the U.S. dollar, leading to a catastrophic crash in Luna’s value and the collapse of the Terra ecosystem.
In response, a hard fork was implemented, resulting in the creation of Terra 2.0 and the issuance of a new token. The original Luna token was rebranded as Terra Luna Classic (LUNC), and its ecosystem has since focused on recovery efforts, including token burns and staking initiatives.
As LUNC continues to show signs of bottoming and recovery, investors remain watchful of key support and resistance levels, staking growth, and ongoing burn activities. These factors will likely play a significant role in determining the token’s future trajectory.
For more updates on cryptocurrency trends, market analysis, and investment insights, stay informed with the latest news.
