The LUNC price has retreated sharply this week, moving to the lowest level since 2022. Terra Luna Classic dropped to a low of $0.00004745, down by 65% from its highest level in November last year.
LUNC’s crash happened even as the number of tokens being incinerated continued soaring. Data shows that over 1.59 trillion tokens have been burned in the last seven days, bringing the total incinerated tokens since its inception to 402.17 billion.
Most of these tokens were burned by Terraform Labs, which was forced to incinerate billions of tokens. Binance, the biggest crypto exchange in the world, has mostly burned the others.
These burns have reduced the number of circulating supply to about 5.5 trillion coins, down from over 6 trillion. In theory, a crypto project should do well when there is a significant increase in token burns.
For starters, a token burn is a situation where a cryptocurrency is removed from the market by being dumped in an inaccessible wallet. In addition to LUNC, other common crypto projects that burn substantial tokens are BNB Coin and Tron.
LUNC price has crashed to near record low as investors sell their coins. A good example of this is that the amount of staked LUNC tokens has moved to 985.7 billion, representing 15.15% of the circulating supply. This figure stood at 15.32% a few weeks ago, signaling that investors are selling.
Read more: 393 Billon Terra Luna Classic Burned: Can LUNC Price Surge 90%
LUNC price forecast
The weekly chart shows that the Terra Luna Classic price has been in a strong downward trend recently. It has remained below the descending trendline that connects the highest swing since September 2022.
LUNC has now bottomed to a key price, where it struggled to move below in late 2023 and 2024. That is a sign that the price is the lower side of the descending triangle pattern, a popular bearish chart pattern.
The price of Terra Luna Classic has moved below the 50-week moving average. With LUNC’s demand waning, a strong bearish breakdown is likely. The next reference level is its all-time low, $0.00003555.
A clear LUNC bullish breakout will be confirmed if the coin rises above the upper side of the descending triangle pattern.
