As Bitcoin soared to a record high this week, Terra Luna Classic (LUNC) faced a price retreat, falling 25% from its peak earlier in December. Trading at $0.000133, LUNC’s price remains on edge despite the broader cryptocurrency market’s optimism, driven by a rally in the crypto Fear and Greed Index.
š³ #LUNCBURN ALERT š³
— LUNC BURN TRACKER (@LUNCMetrics) December 16, 2024
1,000,000 #LUNC was just incinerated. Who owns this wallet? š terra1t8xqrau6x43tdrr6fr0r5yljqu85t6js5qll40
Total #LunaClassic Burn is now: 393,794,857,926
ā¤ļø Like and š Retweet to show your support!#LUNCcommunity #LUNCarmy
Terra Luna Classic Token Burn Gains Traction
One of the key developments affecting LUNCās price is its ongoing token burn initiative. Since the collapse of Terra in May 2022, over 393.8 billion LUNC tokens have been burned, a significant move aimed at reducing the token supply and enhancing scarcity. In the past week alone, more than 524 million tokens were burned, reducing the circulating supply to approximately 6.51 trillion.
Token burns serve a crucial role in the cryptocurrency space by introducing a deflationary mechanism. With fewer tokens in circulation, the remaining tokens can potentially gain value, benefiting holders. Terraform Labs accelerated the token burn effort in November as part of its bankruptcy settlement, further contributing to the deflationary pressure on LUNC.
Key Catalysts Impacting LUNC Price
The Terra Luna Classic community is also focused on the upcoming developments outlined in Proposal 12147, which seeks to update the Terra Classic dashboard on CoinMarketCap. Many members believe that this change will increase the token’s visibility and attract new investors, potentially boosting LUNC’s price.
A major event is expected on December 17, when the Terra Luna Classic blockchain will halt at block height 21,163,600 to implement the reverse charge tax approach from Proposal 515. The introduction of the TaxKeeper will enhance transaction handling, and this update is anticipated to add further volatility to the price of LUNC, as seen with previous network upgrades.
Technical Outlook for LUNC
The LUNC price chart shows a decline from a high of $0.0001796 earlier this month, with a current price of $0.000130. Despite the recent pullback, the coin remains above the 50-day and 200-day moving averages, which formed a bullish golden cross pattern on November 29. LUNC has found support at $0.00013, marking the upper side of the cup-and-handle pattern, which suggests potential for a price rebound.
Also Read: Terra Luna Classic Eyes Major Upgrade and Proposal 12147 Vote, Whatās Next for LUNC and USTC?
If LUNC can overcome the $0.0001796 resistance, there is a possibility of testing the year-to-date high of $0.0002545, signaling a 90% potential gain from its current level. As the token burn continues and network upgrades unfold, LUNCās future price trajectory remains uncertain but holds promise for cautious optimism.
Disclaimer:Ā The information in this article is for general purposes only and does not constitute financial advice. The authorās 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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