This week, much like Bitcoin and other alternative cryptocurrencies, Terra Luna Classic’s price continued to decline, experiencing downward pressure.
The price of Terra Luna Classic (LUNC) fell to a crucial support level of $0.00010, which is its lowest point since the end of December last year. This decline represents a 42% drop from its peak in December.
One possible factor that could influence the cost of LUNC is the continuous token destruction, which has been increasing significantly in recent months. Data from LUNC Metrics indicates that the network has incinerated approximately 397 billion tokens since May 2022.
Over the last week, a staggering 341 million units of this digital asset were destroyed, with that number still climbing. On January 10th, daily destruction surpassed 686 million. Binance takes the lead in these burnings, having eliminated nearly 70 billion tokens. Additionally, DFLUNC Protocol and LunaticsToken have each incinerated over 2 billion and 1.9 billion units of this currency, respectively.
Through the process of token burning, the number of LUNC in circulation has decreased significantly over the last two years, now standing at approximately 6.50 trillion. Essentially, when tokens are burned, it leads to a decrease in the total supply and theoretically increases the value of the remaining tokens by creating scarcity, which can potentially drive up their price in the cryptocurrency market.
Over the last several days, it appears that more and more investors are adding their staked tokens to the pool. This staking ratio now stands at 15%, which translates to approximately 981 billion LUNC tokens, marking a significant increase from the previous week’s low of 14.8%.
An increased stake ratio is a good indication for a cryptocurrency, since it lowers the quantity of coins that can be sold on the market, thus alleviating selling pressure. Such favorable indicators could potentially contribute to an upturn in LUNC’s price once the current downtrend subsides.
LUNC price analysis
On a day-to-day basis, we can observe that the price of LUNC reached an all-time high of $0.0001790 back in December. However, it subsequently pulled back from these highs and now stands at around $0.00010. This dip has been influenced by the continued slump in the overall cryptocurrency market.
Just now, the value of the token fell beneath a crucial support level at $0.0001054, which was also the neckline of a minor double-top chart pattern called a “double top”. Moreover, LUNC has dropped below both its 50-day and 200-day moving averages.
In a favorable outlook, the coin has developed a cup and handle pattern, which is a commonly used bullish sign. This pullback could be part of the handle stage. Consequently, there’s a possibility that the price of Terra Luna Classic might surge as long as it maintains above the crucial support level at $0.00009060.
If the predicted recovery occurs, we’ll first focus on the potential double-top at around $0.000122. Next, our attention will shift towards the upper boundary of the cup formation at approximately $0.0001310. Lastly, a significant level to watch would be the high from December at $0.000179. A rise back to last month’s high would signify an increase of 73% from the current price level.
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2025-01-10 17:06