Terra Luna Classic sends mixed signals as LUNC burn rate grows

The price of Terra Luna Classic rose for the second day in a row as token burning activity accelerated this week.

Terra Luna Classic (LUNC), a remnant of the collapsed Terra network, reached an intraday high of $0.00009217, increasing its market value to $500 million.

This rally could be due to the recent US election results, in which Donald Trump won by a significant margin, leading to potential changes in crypto regulation. Indeed, most cryptocurrencies are on the rise; Bitcoin (BTC) retested its all-time high and the total market cap of all cryptocurrencies reached $2.5 trillion.

Crypto traders expect Trump to appoint crypto-friendly officials to lead the Securities and Exchange Commission; Among the suggested names is Hester Peirce, who is currently an SEC official.

LUNC’s price also jumped following the sharp increase in token burns. According to LUNCMetrics, the total number of tokens burned rose to 388.533 billion; 137 billion tokens were burned this week alone.

This increase comes after Terraform Labs announced it was shutting down Shuttle Bridge as part of its agreement with US regulators during Chapter 11 bankruptcy proceedings.

Dear Terra Community,

Following our previous announcement, the Shuttle Bridge interface is now permanently closed.

As part of this process, all remaining tokens in Shuttle Bridge wallets were burned to complete the shutdown.

Thank you for your interest and… https://t.co/bOjAWRDElH

— Terra 🌍 Supported by: LUNA 🌕 (@terra_money) November 5, 2024

Shuttle Bridge previously allowed users to send LUNC and USTC tokens bridged to Ethereum, BNB Chain, and Harmony back to Terra Luna Classic. The remaining tokens were burned and moved to an unrecoverable address.

Terra Luna Classic burned | Source LUNC Burn Tracker Terra Luna Classic with alarming specifications LUNC price chart | Source: TradingView

Despite recent gains, LUNC’s technical indicators are mixed. A rising wedge formation has formed on the daily chart, which is a typical bearish indicator.

LUNC is also trading slightly below its 50-day and 200-day Exponential Moving Averages. MACD and Relative Strength Index shifted to neutral level.

Additionally, LUNC formed a bearish pennant pattern. This setup signals a possible downtrend that could push the price to the August 5 low of $0.000054. Conversely, a move above the key resistance level at $0.00010 could signal more gains.