LUNC Price Bottoms as Terra LUNA Classic Surpasses 406B Milestone

Terra Luna Classic (LUNC) has shown signs of bottoming out after a significant drop of over 90% from its all-time high. The token’s price has found strong support around $0.00005385, a level it has failed to break below since its inception. This support could potentially mark a base for a bullish breakout, indicating that LUNC may be poised for recovery.

LUNC is currently seeing a significant milestone, having crossed the 406 billion tokens burned mark. In the past week alone, the network burned over 280 million tokens, contributing to this milestone. The burn process has been primarily driven by Terraform Labs, following a U.S. bankruptcy court ruling, and supported by Binance, the largest crypto exchange, which has burned over 71 billion tokens in the past three years.

Additionally, the number of LUNC tokens being staked is rising, which is seen as a bullish signal. The staking ratio has reached 15.85%, the highest level since November 2024, suggesting an increasing level of confidence in the token despite its falling price.

The weekly chart shows that the LUNC price reached a low of $0.000054 this month, which is a notable support level. The price has failed to drop below this level in July, September of the previous year, and even 2024, hinting at a strong demand at these levels. The only time LUNC went below this level was in June 2022, when it briefly dropped to $0.00003440 before recovering.

This price behavior suggests that LUNC may be forming a quadruple bottom, which is a common bullish reversal pattern. If the price breaks above current resistance, it could potentially surge to $0.0001797, a 180% increase from current levels.

LUNA, now LUNC after a rebranding, was originally launched by Do Kwon and Daniel Shin as part of the Terra blockchain ecosystem. The project aimed to create a stablecoin, TerraUSD (UST), which was algorithmically tied to LUNA. However, after UST de-pegged from the U.S. dollar in May 2022, the value of LUNA (and consequently LUNC) collapsed, leading to massive losses and the collapse of the Terra ecosystem. This event led to the creation of Terra 2.0 via a hard fork, issuing a new token to replace the old LUNA.

Despite its tumultuous past, the recent developments in the LUNC network, including significant token burns and rising staking activity, have created a foundation for a potential price recovery. However, if the price fails to hold above its current support level, further downside could see the token dip to $0.000034.

The path forward for LUNC seems uncertain, but these technical signs of support and the increasing burn efforts offer hope for a potential comeback.