Terra Luna Classic price remained on edge this week even as Bitcoin surged to a record high and the crypto fear and greed index rallied. LUNC token was trading at $0.000133, down 25% from its highest level this month.
Terra Luna Classic token burn continues
The LUNC token price has retreated as data shows that the token burn is gaining steam. Data by LUNC Burn Tracker shows that over 393.8 billion tokens have been incinerated since May 2022 when Terra collapsed.
Over 524 million tokens have been burned in the last seven days, bringing the total number of those in circulation at 6.51 trillion. One user burned one million Terra Luna Classic tokens on Monday.
LUNC’s token burn accelerated in November when Terraform Labs burned millions of tokens as part of its bankruptcy settlement.
A token burn is an important part of the cryptocurrency industry that helps to ensure that a token is deflationary. It does this by lowering the number of tokens in circulation and making the remaining ones more valuable.
Terra Luna Classic price is also reacting to the recent voting of Proposal 12147 that intends to update the Terra Class dashboard on CoinMarketCap. Members believe that the vote will help to create more visibility to new and existing users.
The next key catalyst for the LUNC price will happen on December 17 when the chain will be halted at block height 21,163,600 when the network will implement the reverse charge tax approach as voted in Proposal 515.
The new changes will be on introducing the TaxKeeper to various parts of the application and ensuring that it is properly initialized and utilized in transaction handling. Historically, LUNC price tends to have some volatility ahead of a major upgrade.
Read more: Can Terra Luna Classic (LUNC) Price Realistically Hit $1?
LUNC price analysis
The daily chart shows that the Terra Luna Classic price topped at $0.0001796 earlier this month and has now dropped by 25% to the current $0.000130. It has remained slightly above the 50-day and 200-day moving averages, which formed a golden cross pattern on November 29.
The coin has also moved to the important support at $0.00013, the upper side of the cup and handle pattern. As such, there are odds that the ongoing retreat is part of the formation of the handle section.
Therefore, there is a likelihood that the LUNC price will bounce back and possibly retest this month’s high of $0.000018. A move above that level will point to more gains, potentially to $0.0002545, the year-to-date high, which is about 90% above the current level.
