- LUNC Price Recovery Accelerates, Targets 60% Surge Supported by Token Burns
The price of Terra Classic (LUNC) has experienced a remarkable surge this week, reaching its highest levels since March. With a strong technical chart forming, the price could be poised for a further 60% increase, supported by ongoing efforts to burn tokens and upcoming network upgrades.
Bullish Technical Patterns in Play
On Friday, LUNC was trading at $0.0001620, marking a 193% rise from its lowest point this year. This impressive rebound could continue in the coming weeks, driven by several bullish technical signals.
One key development is the formation of a golden cross on November 18, when the 50-day and 200-day Exponential Moving Averages (EMA) crossed over each other. Historically, this pattern has been a strong bullish indicator. For instance, a similar golden cross appeared in October 2023, when LUNC was priced at $0.00013. This led to a significant 125% price jump, reaching $0.0002795, its highest point this year.
Moreover, there are signs that LUNC is forming a cup and handle (C&H) pattern, with the resistance level at $0.0002795. This formation is known for signaling long-term bullish trends and often leads to price surges of around 60%. If LUNC can break the key resistance at $0.0002546, its March highs, the path to this potential rise becomes even clearer. In addition, the coin is showing signs of a bullish flag or pennant pattern, which further supports the possibility of continued upward momentum.
Also Read: Terra Luna Classic Community Backs v3.3.0 Upgrade Amid Speculation of a Major LUNC Rally
Token Burn Drives Demand
A key factor contributing to LUNC’s price recovery is the ongoing token burn initiative. Since its inception, over 393 billion LUNC tokens have been removed from circulation, representing 84% of the total supply. Just in the past week, 2.36 billion tokens were burned. This deflationary measure reduces the token supply, increasing scarcity and, potentially, demand, which supports the price.
Upcoming Network Upgrade
Further fueling optimism, LUNC’s network is set to undergo an important upgrade. This upgrade will simplify tax handling and, more notably, allow developers from the Cosmos ecosystem to build on the Terra Classic network, potentially attracting more projects and use cases.
With technical patterns signaling strong bullish momentum and fundamental factors like token burns and network upgrades, LUNC appears positioned for continued growth in the coming weeks.
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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