LUNC price could soar as Terra Luna burns 1.34b tokens

The Terra Luna Classic price has gradually risen since its August bottom, and analysts are optimistic about further rises.

Terra Luna Classic (LUNC), a remnant of the collapsed Terra network, climbed to $0.000129 this week, reaching its highest point since March of this year.

Some crypto analysts believe that the token has more room to grow, especially if the crypto bull run gains momentum.

Miles Deutscher, one of X’s popular analysts, stated in a recent post that he has long been LUNA and LUNC. He cited strong bullish charts and meme appeal as reasons why LUNC remains listed on Binance.

I can’t believe I’m saying this…

But I missed $LUNC And $LUNA. 😂

– 2021 coins are being pumped and LUNA is the most famous of them
– There are still Binance listings
– Memes can be made
– Charts look good (just starting to break initial resistance) pic.twitter.com/sjj8jSAb6X

— Miles Deutscher (@milesdeutscher) 23 November 2024

Another potential catalyst for Terra Luna Classic is the ongoing token burn, which will cause the supply to decrease and the value of the remaining tokens to increase. According to LUNC Metrics, the network burned 1.34 billion tokens in the last seven days.

The network has now burned more than 390 billion tokens, leaving a circulating supply of 6.51 trillion. A significant burn occurred earlier this month when Terraform Labs burned 251 billion tokens as part of its bankruptcy filing.

The LUNC staking rate has also risen from its 2022 low and is now close to 16%. This shows that many investors hold the token for the long term.

LUNC price chart points to more gains LUNC chart | Source: crypto.news

The daily chart shows that Terra Luna Classic is in a slow uptrend after falling as low as $0.000054 a few months ago. It formed a cup and handle formation with an upside at $0.000129; This formation is known as a signal of the continuation of the rise.

Depending on the depth of the cup, the coin could rise to $0.0002055, approximately 75% above its current level. This target is slightly above the 38.2% Fibonacci Retracement level at $0.00020.

LUNC’s move above the 50-day and 100-day moving averages further supports the bullish view. The Relative Strength Index is also climbing, reflecting the sustained upward momentum. However, a fall below the 100-day moving average at $0.000095 will invalidate the bullish view.