LUNC price could soar as Terra Luna burns 1.34b tokens

Terra Luna Classic price has risen gradually after bottoming in August, and analysts are optimistic that it has more upside.

Terra Luna Classic (LUNC), the remnant of the collapsed Terra network, climbed to $0.000129 this week, marking its highest point since March this year.

Some crypto analysts believe the token has more room to grow, especially if the crypto bull run gains momentum.

In a recent post, Miles Deutscher, a popular analyst on X, noted that he was long LUNA and LUNC. He cited reasons such as LUNC’s continued listing on Binance, strong bullish charts, and its meme appeal.

Another potential catalyst for Terra Luna Classic is the ongoing token burn, reducing supply and increasing the value of the remaining tokens. According to LUNC Metrics, the network burned 1.34 billion tokens in the last seven days.

The network has now burned over 390 billion tokens, leaving a circulating supply of 6.51 trillion. A significant burn occurred earlier this month when Terraform Labs burned 251 billion tokens as part of a bankruptcy requirement. 

The LUNC staking ratio has also risen from its 2022 lows, now approaching 16%, indicating that many investors are holding onto the token for the long term.

LUNC price chart points to more gains

The daily chart indicates that Terra Luna Classic has been on a slow bullish trend after bottoming at $0.000054 a few months ago. It has formed a cup and handle pattern, with the upper side at $0.000129, a pattern known for signaling bullish continuation.

Based on the depth of the cup, the coin could rise to $0.0002055, approximately 75% above its current level. This target is slightly above the 38.2% Fibonacci Retracement level at $0.00020.

Further supporting the bullish outlook is LUNC’s movement above the 50-day and 100-day moving averages. The Relative Strength Index is also climbing, reflecting sustained bullish momentum. However, a drop below the 100-day moving average at $0.000095 would invalidate the bullish view.