Terra Luna Classic (LUNC) has experienced a 10% surge in price following a broader recovery in the cryptocurrency market. This uptick comes after a major development—over 1.6 trillion LUNC tokens were burned in just one week. This significant burn has sparked speculation among investors and analysts alike, questioning whether it could trigger a much larger rally, potentially pushing LUNC’s price up by 50%.
The burn mechanism for Terra Luna Classic is designed to reduce the circulating supply of tokens. Recent data shows that 1.59 billion LUNC tokens were burned in the past week, contributing to a cumulative total of 402.17 billion tokens burned since May 2022. As of now, the circulating supply stands at 6.50 trillion LUNC, which is just below the total supply of 6.51 trillion tokens.
While the impact of such burns on the price of LUNC has historically been mixed, many investors are hopeful that the latest large-scale burn will create lasting upward momentum. Some analysts speculate that if the trend continues, the price could increase by 50% or more, bolstered by a growing sense of bullishness across the crypto market.
On Tuesday, LUNC's price stood at $0.00006417, marking a slight recovery after a period of declines. In the past 24 hours, LUNC saw a 2.49% increase, with trading volume reaching 24.77 billion tokens. The Relative Strength Index (RSI) has risen to 43, indicating a rebound from previously oversold conditions. This suggests that investor interest is returning, with buying pressure potentially driving prices higher.
The Chaikin Money Flow (CMF) indicator also remains positive, at 0.06, reflecting an influx of capital that could further support LUNC's recovery.
LUNC is currently trading within a rising channel, a pattern that suggests potential short-term gains. The cryptocurrency’s next key resistance level is $0.00008, which could act as a breakout point for continued bullish momentum. If LUNC successfully breaches this level, analysts predict that the price could rise to $0.0001, marking a 52.4% increase from its current value.
However, should the upward momentum falter, the immediate support zone lies around $0.00006, where LUNC could potentially pull back before making another attempt at breaking past resistance.
The price of Terra Luna Classic is closely tied to both its burn rate and the broader market sentiment. While large burns have historically led to temporary price boosts, a sustained 1.6 trillion token burn could mark a turning point for LUNC, propelling the cryptocurrency to new heights. Whether or not this happens depends on continued investor confidence and market conditions, but for now, the potential for a 50% rally remains very much alive.
