- Terra Luna Classic (LUNC) Price Set for More Gains: Analysts Bullish on Upside Potential
After bottoming out at $0.000054 in August, Terra Luna Classic (LUNC) has been gradually climbing, hitting a new high of $0.000129 this week. This represents its highest price point since March, and analysts are optimistic that there’s more room for growth, especially if the ongoing crypto bull run continues.
LUNA and LUNC have been at the forefront of discussions in the crypto space, with some experts predicting the token could see a significant rise. In a recent post on X, popular crypto analyst Miles Deutscher expressed his positive outlook, noting that he remains bullish on both LUNA and LUNC. His optimism is driven by factors such as LUNC’s continued listing on Binance, the token’s strong bullish charts, and its meme coin appeal, which continues to draw attention from investors.
I can't believe I'm saying this..
— Miles Deutscher (@milesdeutscher) November 23, 2024
But I longed $LUNC and $LUNA. 😂
– 2021 coins are pumping, and LUNA is the most infamous of them all
– They still have Binance listings
– It's meme-able
– Charts look good (just starting to break initial resistance) pic.twitter.com/sjj8jSAb6X
Token Burn and Supply Reduction
One of the key factors driving the positive sentiment around Terra Luna Classic is the ongoing token burn. Over the past week alone, the network has burned 1.34 billion tokens, reducing the circulating supply and potentially increasing the value of the remaining tokens. To date, over 390 billion LUNC tokens have been burned, leaving a circulating supply of 6.51 trillion tokens.
This deflationary mechanism has been a cornerstone of the LUNC ecosystem’s recovery. A significant burn event took place earlier this month when Terraform Labs, as part of its bankruptcy requirements, burned 251 billion tokens. These supply-reduction efforts are widely seen as positive for the token’s long-term value.
Staking and Investor Confidence
In addition to the token burn, the LUNC staking ratio has been steadily rising. From its lows in 2022, the staking ratio is now approaching 16%, signaling growing investor confidence and a long-term commitment to the token. As more investors stake their LUNC tokens, it further supports the price floor and drives optimism for future price movements.
Bullish Chart Patterns and Technical Outlook
Technical analysis on LUNC’s price chart points to continued bullish momentum. The token has formed a cup and handle pattern, a technical formation known for signaling upward continuation. The cup’s upper boundary sits at $0.000129, and based on the pattern’s depth, analysts believe LUNC could rise to as high as $0.0002055—a 75% increase from its current level. This price target aligns closely with the 38.2% Fibonacci retracement level at $0.00020, further confirming the bullish outlook.
Additionally, LUNC’s movement above the 50-day and 100-day moving averages, along with a rising Relative Strength Index (RSI), suggests sustained bullish momentum. These technical indicators are further evidence of growing investor confidence in the token’s price potential.
Key Levels to Watch
While the outlook is generally positive, analysts caution that a drop below the 100-day moving average at $0.000095 could signal a reversal and invalidate the bullish case for LUNC. Therefore, traders and investors should keep a close eye on these key levels to assess the future direction of the price.
Terra Luna Classic’s gradual rise in price and the recent bullish technical patterns suggest the token has significant upside potential. With factors like the ongoing token burn, an increasing staking ratio, and positive price action, LUNC may continue to outperform in the coming months. However, as with all cryptocurrencies, market conditions and investor sentiment will play a crucial role in determining whether the token can break past key resistance levels and reach new highs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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