Terra Luna Classic price has continued its steep downward trend despite the network achieving a key burn milestone.
Terra Luna Classic (LUNC) dropped to a low of $0.00007045 this week, marking its lowest level since August 2024 and a decline of 55% from its December highs.
According to LUNCMetrics, the network surpassed the 400 billion burn milestone this week. Over 400.6 billion LUNC tokens have been incinerated so far, with the trend continuing.
In the last seven days alone, 1.45 billion tokens were burned, leaving 6.5 trillion coins still in circulation. Terraform Labs, which filed for bankruptcy protection in 2024, remains the largest contributor to token burns, having destroyed over 259 billion tokens as part of a U.S. court order tied to its bankruptcy proceedings.
Binance has burned over 70 million tokens, while DFLUNC, LunaticsToken, and MEXC are among the next major contributors. In theory, burning reduces the circulating supply of a cryptocurrency, which could increase its price by making the remaining tokens rarer.
One reason for LUNC’s price decline is the increasing number of holders selling their coins. The staking ratio has dropped from nearly 16% in November to 15% today, indicating reduced investor commitment.
Additionally, data shows that more LUNC tokens are being moved to exchanges. One wallet transferred over 1 billion tokens to Cryptex. In a detailed thread, a top LUNC validator attributed these flows to recent market volatility and strategic consolidation by investors.
Terra Luna Classic emerged after the collapse of the original Terra ecosystem in 2022. Despite its struggles, it remains a significant player in the crypto industry, with a market cap of over $450 million.
LUNC price technical analysis
The daily chart shows that Terra Luna Classic peaked at $0.0001793 in December before crashing by over 57% to $0.000076. The coin has broken below the ascending trendline connecting the lowest levels since August 2024.
Terra Classic’s 50-day and 100-day Exponential Moving Averages have also made a bearish crossover. It also formed a head and shoulders chart pattern, while oscillators like the Relative Strength Index and the MACD indicators have continued falling.
Given these factors, the LUNC price is likely to continue its downtrend, with the next key target being $0.000050, its lowest point in 2024. This bearish outlook would be invalidated if the price rises above the ascending trendline.
