The Terra Luna Classic token is exhibiting signs of stabilizing after experiencing a decline of over 90% from its peak value.
The price of Terra Luna Classic (LUNC) has established robust support at $0.00005385, a level it hasn’t breached since its launch. This could indicate that the token is on the verge of a bullish movement.
Possible triggers for LUNC price
LUNC is approaching a significant milestone with the burning of 406 billion tokens. Recent data reveals that the network has incinerated more than 280 million tokens in the past week, raising the total number of burned tokens to 406 billion.
Currently, over 336.2 billion LUNC tokens have been transferred to the burn wallet, with nearly 70 billion of these coins being burned on-chain. Most of these incinerations originated from Terraform Labs, following a U.S. bankruptcy court’s directive.
The largest cryptocurrency exchange, Binance, has also been a key player in burning LUNC tokens, having discarded over 71 billion tokens in the past three years while continuously backing all upgrades.
In addition, an increasing number of LUNC holders are participating in staking, which is an encouraging sign that the token may be poised for recovery. The staking ratio for LUNC has climbed to 15.85%, its highest since November 10, 2024.
A high staking ratio during a downturn is typically seen as a strong bullish indicator.
Signs of stabilization in LUNC price
The weekly chart indicates that the price of Terra Luna Classic dipped to $0.000054 earlier this month. This level is significant, as the coin had previously failed to fall below it in July and September of last year, and it also sustained above this mark in 2024.
Prior to this, LUNC’s price last fell beneath this level in June 2022, when it reached a low of $0.00003440. That decrease also turned out to be a false breakdown.
Consequently, it is plausible that the price of Terra Luna Classic has formed a quadruple bottom, a well-known bullish reversal pattern. A bullish breakout could propel the price to the next critical resistance point at $0.0001797, which was the highest peak recorded in November last year.
This represents a potential increase of around 180% from the current price. Should the price drop below that support level, it could indicate further declines towards $0.000034.
The history of LUNC
The LUNC token, initially referred to as Luna, was developed by Do Kwon and Daniel Shin, the co-founders of Terraform Labs.
Based in South Korea, Terraform Labs introduced the Luna token as part of the broader Terra blockchain ecosystem, intending to create a stablecoin (TerraUSD or UST) through an algorithm linked to Luna. However, after UST lost its peg to the U.S. dollar in May 2022, the value of Luna (now LUNC following a rebranding) plummeted, resulting in substantial losses and the collapse of the Terra ecosystem.
Subsequently, a hard fork was initiated, leading to the launch of Terra 2.0, accompanied by the issuance of a new token to supplant the original.