Terra Luna Classic (LUNC) Price Stalls as Burn Rate Increases and Community Initiatives Emerge
LUNC stabilizes at a vital support level as burn rate increases, with over 727 million tokens burned recently. Despite community proposals for liquidity enhancement, LUNC remains in a bearish trend. Key technical levels signal potential declines if current support is breached.
The Terra Luna Classic (LUNC) token has recently stabilized at a significant support level as its burn rate surged amid a vital community vote. As of Wednesday, LUNC was trading at $0.000060, reflecting a substantial decline exceeding 66% from its peak in December.
Despite the increase in token burns, LUNC’s value continued to decline. Recent data from LUNC Metrics indicates that over 727 million tokens were incinerated in the last week, raising the total number of tokens burned since inception to more than 407 billion. Notably, the Luna Foundation Guard contributed significantly, incinerating over 211 million tokens on Wednesday alone, along with more than 1.7 billion TerraClassic USD tokens.
The Luna Foundation Guard was established by Terraform Labs to bolster the Terra ecosystem’s growth, focusing on its stablecoin. Additionally, LUNC’s price has shown little movement following a proposal from users to implement a phased strategy to introduce liquidity for the USD Coin (USDC) on-chain. This initiative aims to create USDC/LUNC liquidity pools to enhance on-chain liquidity and expand decentralized finance opportunities.
From a technical perspective, the daily chart reveals that LUNC is currently situated at a crucial support level, which it has repeatedly failed to breach since July 2022. This pattern signifies that bearish traders are hesitant to drive LUNC prices lower. Currently, LUNC remains below the 50-day moving average and a descending trendline linking the highs since January 19, indicating a bearish continuation pattern known as a descending triangle.
Further downward movement may be validated if LUNC breaks below the pivotal horizontal support connecting its lowest level since July 2024. A successful breach of this support could see LUNC’s price drop to approximately $0.000047, representing a potential decline of 22% from its current position.
In summary, Terra Luna Classic (LUNC) is witnessing stagnation at a critical support level while also experiencing an increase in its burn rate. Despite recent incinerations and community initiatives aimed at liquidity enhancement, LUNC’s price action remains bearish. The technical analysis indicates that further declines could occur if key support levels are breached, raising concerns about the future value of LUNC.
Original Source: crypto.news
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