Terra Luna Classic price remains under pressure despite the gain in momentum of its token burn. The LUNC token was trading at $0.000054, a crucial support where it has failed to move below several times in the past. It has dropped by over 90% from its all-time high, bringing its market cap to over $337 million.
Catalysts for Terra Luna Classic
The LUNC price has three potential catalysts that may catapult it higher in the long term. The most bullish catalyst for the coin is the recent increase in ongoing token burns.
Data shows that approximately 406 billion LUNC tokens have been burned since 2022. At the current price, these tokens are worth over $25 million.
In the last seven days, over 334 million tokens have been incinerated, leaving the circulating supply at over 5.46 trillion. This burn rate momentum will likely continue in the coming years, potentially increasing the value of the remaining tokens over time.
Binance has contributed substantially to these token burns. Over time, it has burned over 70.84 billion tokens, making it the second-largest contributor to token burns after Terraform Labs.
The other potential catalyst for the LUNC price is that the total future open interest has continued to fall. The coin also has a negative funding rate, indicating that short positions are paying funding fees to long positions.
In theory, a falling futures open interest and a negative funding rate are bearish. However, historically, most cryptocurrencies start to rise when there is substantial negativity in the ecosystem.
From a macro level, the coin is likely to benefit from the actions of the Federal Reserve. The falling US bond yields are a sign that many investors anticipate the bank will start cutting interest rates later this year. If this happens, many risky assets, including LUNC, will start bouncing back.
LUNC Price Analysis
The other reason why the Terra Luna Classic price will recover is that it has fallen to a crucial support level. It moved to a low of $0.00005466, where it has failed to move below several times since September 2023.
This price action is a sign that the LUNC price has formed a triple-bottom pattern, a popular bullish sign.
The LUNC token has also moved to the accumulation phase of the Wyckoff Theory, which is characterized by sideways movements.
Therefore, the LUNC price is likely to experience a strong rebound, with the initial target being at $0.00018, up by 195% from the current level. A break above that price will point to further gains, potentially to $0.0002796, its highest level in December 2023, which is about 350% from the current level.
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