The Terra Luna Classic token has stabilized at an important support level as the weekly burn rate increased significantly and an important community vote commenced.
On Wednesday, Terra Luna Classic (LUNC) was priced at $0.000060, a figure it has maintained for several days. This represents a decline of over 66% from its peak in December.
Despite the burn of more tokens, LUNC has continued its downward trend. As reported by LUNC Metrics, more than 727 million tokens were burned over the past week, bringing the total number of tokens destroyed since its launch to over 407 billion.
The majority of this week’s burns were executed by the Luna Foundation Guard, which eliminated more than 211 million tokens on Wednesday. Additionally, it incinerated over 1.7 billion TerraClassic USD tokens.
The Luna Foundation Guard was created to bolster the Terra ecosystem, with a particular focus on its stablecoin.
The price of LUNC has remained stable in the wake of a proposal from some users to implement a phased approach for establishing on-chain liquidity for the USD Coin (USDC).
This initiative aims to develop USDC/LUNC liquidity pools to enhance on-chain liquidity, provide decentralized finance utility, diminish reliance on centralized exchanges, and create arbitrage opportunities. Furthermore, this pairing would contribute to tax volume and elevate the burn rate.
Technical Analysis of LUNC Price
The daily chart indicates that Terra Luna Classic has hit a significant support level, which it has struggled to fall below several times since July of last year. This suggests that bearish sentiment is waning at this level.
LUNC currently sits below the 50-day moving average and a descending trendline linking the swing highs since January 19. This pattern suggests the formation of a descending triangle, a noted bearish continuation pattern.
A confirmation of further downside would occur if the price breaks below the horizontal support that aligns with the lowest point since July 2024. Such a breach could send LUNC to the next significant support level at $0.000047, roughly 22% below the current price.