Terra Luna Classic (LUNC) has reached a key support level, with the daily chart reflecting mixed signals amid a soaring burn rate. While some indicators suggest a potential bullish breakout, others hint at continued bearish pressure.
LUNC Struggles at Key Support
LUNC was trading at $0.000070 on Thursday, hovering just above the crucial support level of $0.000054. This level has historically provided strong support, having held firm in June 2022, September 2023, and July 2024. A sustained rebound from this zone could set the stage for a significant recovery.
The burn mechanism, which reduces the circulating supply, continues to be a major factor in LUNC’s price action. Over the past seven days, 382.4 million tokens were burned, bringing the total burn count to over 403 billion. Despite this, the token’s supply remains substantial, with approximately 6.49 trillion LUNC still in circulation.
Binance’s Role in LUNC’s Future
Binance remains a critical player in Terra Luna Classic’s ecosystem. The exchange has incinerated over 70.8 billion tokens through its monthly burn events and continues to support the network by maintaining LUNC listings and facilitating key upgrades.
Interestingly, despite recent market downturns, Binance has held onto its LUNC holdings while offloading assets like Ethereum and Solana. This could indicate confidence in LUNC’s long-term potential.
Technical Outlook: Bullish or Bearish?
LUNC’s price chart presents two conflicting signals:
- Bullish Scenario: The price action suggests a potential quadruple bottom formation—a classic bullish reversal pattern. If this plays out, it could indicate that short sellers are hesitant to drive prices lower, increasing the likelihood of an upward breakout.
- Bearish Scenario: A descending triangle pattern has also emerged, which traditionally signals a continuation of the bearish trend. If LUNC breaks below the $0.000055 support, further downside could follow, leading to lower price levels.
A decisive move above the descending trendline could trigger a sharp rally toward the 2024 high of $0.0002792, representing a potential 300% surge from the current price. However, a breakdown below the key support could invalidate this bullish setup and push LUNC into deeper losses.
While the rising burn rate and Binance’s continued support add bullish potential to LUNC’s outlook, the token remains at a critical juncture. The next move—whether a breakout or breakdown—will determine whether LUNC can achieve its projected 300% surge or face further declines. Investors should closely monitor price action at the key support and resistance levels before making trading decisions
