The Terra Luna Classic token crossed a crucial resistance level ahead of two crucial milestones in its network.
Terra Luna Classic (LUNC) price rose to a high of $0.00006430, its highest level since March 28. It has jumped by almost 40% from the lowest level this year.
The uptrend may continue as the network’s burn rate accelerates. According to LUNC Metrics, the network has burned 205.3 million tokens over the past seven days. Since May 2022, LUNC has burned a total of 408.2 billion tokens, bringing the circulating supply down to 5.45 trillion. If this pace continues, total burns are expected to surpass 410 billion early next month.
Additional LUNC tokens are expected to be incinerated next week when Binance executes its monthly token burn. The exchange has emerged as the leading LUNC burner, having destroyed over 72 billion tokens. Binance contributes by burning 50% of its spot and margin trading fees related to LUNC.
The actual number of tokens burned each month fluctuates based on trading volume. For example, earlier this month, Binance burned 521.9 million tokens, down from 760 million in the previous month.
More LUNC holders are also staking their tokens. Currently, over 1.038 trillion LUNC, roughly 15% of the circulating supply, is staked. This is a notable increase from 13% on the same day last year.
LUNC price technical analysis
The daily chart shows that LUNC has rebounded strongly in recent days. This move followed a drop to a key support level at $0.000057, which had previously acted as support in July, August, February, and March. The token has now moved above a descending trendline connecting the highest swing points since January 20, invalidating a descending triangle pattern that had been forming.
Additionally, the LUNC price has crossed above its 50-day moving average. Notably, the Awesome Oscillator and the MACD indicators have both moved above the zero line, continuing to display a bullish divergence pattern.
If this momentum holds, the LUNC price could rally to the next key resistance level at $0.0001, representing a 60% gain from the current level.
