Terra Luna Classic has crashed to a key support level, with the daily chart sending mixed signals as the burn rate soars.
Terra Luna Classic (LUNC) price was trading at $0.000070 on Thursday, a few points below the crucial support level at $0.000054. Data shows that the Terra Luna Classic token burn has continued to rise, reducing the circulating supply.
The network incinerated 382.4 million tokens in the last seven days, bringing the total burns since inception to over 403 billion. There are now about 6.49 trillion tokens in circulation.
The number of tokens burned will increase this week as Binance conducts its monthly burn. Binance, the largest cryptocurrency exchange, has been one of the top supporters of Terra Luna Classic. It has incinerated over 70.8 billion tokens, and the trend is continuing.
Binance is also one of the top tier-1 exchanges that continues to list the token and has supported its multiple upgrades. Just this week, the exchange backed a minor upgrade by suspending deposits and withdrawals during the process.
One cryptocurrency user noted that Binance is among the top Terra Luna Classic holders, yet the company did not sell its tokens this week. Instead, it dumped Ethereum and Solana, a sign that it still has faith in the network.
Terra Luna Classic is the remnant of Terra, one of the biggest collapses in the crypto industry. Terra offered an algorithmic stablecoin that promised double-digit returns before it collapsed, wiping out billions of dollars in value.
LUNC price analysis: sending mixed signals
The weekly chart shows that the Terra Luna Classic price has been in a strong bearish trend for the past few years. It dropped to the crucial support level at $0.000054, which it failed to break below in June 2022, September 2023, July 2024, and again this month.
On the positive side, this could signal the formation of a quadruple bottom, a popular bullish pattern. This bottom suggests that short sellers are hesitant to place trades below this level.
However, there is also a possibility that the Terra Luna Classic price has formed a descending triangle, a bearish continuation pattern.
A drop below the support at $0.000055 would validate the descending triangle and indicate further downside. Conversely, a breakout above the descending trendline could signal further upside, potentially pushing the price to the 2024 high of $0.0002792, its highest level in December 2023, an increase of approximately 300% from the current level.
