The Terra Luna Classic price has remained under pressure this week, even as the network continued its strong token burns. LUNC was trading at $0.000063, down approximately 65% from its highest level in November.
LUNC Price Stalls at Key Support As Weekly Burn Soars
The number of Terra Luna Classic tokens in circulation has continued to drop in the past few months, thanks to the burn activity.
Data by LUNC Burn Tracker shows that the network incinerated 2 billion tokens in the last seven days. At the current price, these burns are worth over $126,000. Most of these token burns came from Binance, the biggest crypto exchange company in the industry.
These token burns brought the cumulative total since inception to over 405.7 billion tokens, currently worth over $25 million. The circulating supply for the LUNC token has fallen to 5.47 trillion, giving it a valuation of over $350 million.
A token burn occurs when coins are permanently removed from circulation by being moved to an inaccessible address.
The Terra Classic price has also struggled, even as the staking volume has jumped. There are now over 1.01 trillion staked LUNC tokens, representing about 15.6% of those in circulation. This has risen to the highest level since November 16 of the previous year. A higher staking ratio is positive, as it signals that holders are confident in the token.
The LUNC price has responded negatively to these token burns because of the general view of the crypto industry. Bitcoin remains slightly below $90,000, while most altcoins have also pulled back in the past few days.
The next macro catalysts for Terra Luna Classic will be the upcoming US nonfarm payrolls (NFP) data, which will provide hints on what to expect from the Fed.
LUNC Price Analysis
Terra Classic chart by TradingView
The daily chart shows that the LUNC coin peaked at $0.0001795 on December 5 and then pulled back to $0.000068. This is a notable price since it aligns with the lowest levels in July and August of the previous year.
Terra Classic has remained below the 50-day and 100-day Exponential Moving Averages (EMA).
On the positive side, the coin has formed a quadruple bottom at $0.0000577, and its neckline is at $0.0001795. It has also formed a bullish divergence pattern, pointing to a strong rebound. If this happens, the next point to watch will be at $0/00008340, up 30% from the current level.
A break above that level could lead to further gains towards the neckline at $0.0001795, up by 180% from the current level. However, this view will become invalid if the price drops below the support level of $0.000050.
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