The Terra Luna Classic Token: Signs of Recovery

The Terra Luna Classic (LUNC) token is showing signs of bottoming after crashing over 90% from its all-time high.

LUNC has found strong support at $0.00005385, where it has remained since its inception, suggesting a potential bullish breakout.

Potential Catalyst for LUNC Price

LUNC is approaching a 406 billion token burn milestone. Recent data indicates that the network has incinerated over 280 million tokens in the past week, totaling 406 billion burned tokens overall.

Of these, more than 336.2 billion LUNC tokens have been moved to the burn wallet, with nearly 70 billion burned on-chain, mainly by Terraform Labs due to a U.S. bankruptcy court order.

Binance, the largest crypto exchange, has burned over 71 billion tokens in three years and has consistently supported upgrades.

Furthermore, an increasing number of LUNC holders are staking their tokens, with the staking ratio rising to 15.85%, the highest since November 10, 2024. A high staking ratio during price declines is often a bullish indicator.

LUNC Price Shows Bottoming Signs

The weekly chart reveals that LUNC price dropped to $0.000054 this month, a crucial level that it has not breached since July and September last year. The last significant drop below this level was in June 2022, when it fell to $0.00003440, culminating in a false breakdown.

This behavior suggests that LUNC may have established a quadruple bottom, a well-known bullish reversal signal. If the coin breaks out, it could reach its next resistance level of $0.0001797, about 180% above the current price. Conversely, dropping below the support level signals potential declines to $0.000034.

LUNC’s History

Originally called the Luna token, LUNC was created by Do Kwon and Daniel Shin, co-founders of Terraform Labs in South Korea. The Luna token was part of the Terra blockchain ecosystem, designed to underpin a stablecoin, TerraUSD (UST), through an algorithmic mechanism. However, after UST de-pegged from the U.S. dollar in May 2022, Luna (now LUNC) suffered drastic value loss, leading to the collapse of the Terra ecosystem.

A hard fork subsequently resulted in the creation of Terra 2.0, introducing a new token that replaced the original one.

Read more: LUNC price could soar as Terra Luna burns 1.34 billion tokens.