Terra Luna Classic token burn sees massive spike, will LUNC price begin its recovery soon?
- Luna Classic witnessed a massive burn of 51.7 million LUNC tokens by the Cremation Coin project.
- LUNC is currently trading sideways in a downtrend that started in February 2023.
- LUNC could find support at the 78.6% Fibonacci Retracement at $0.000143, before the token begins its recovery.
Terra Luna Classic (LUNC) witnessed a massive spike in its token burn with the contribution of the Cremation Coin project. The project burned a total of 51.7 million LUNC tokens, one of the largest burn initiatives till date. The token is currently in a downtrend since February.
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Terra Luna Classic token witnesses massive burn initiative
Cremation Coin, a community-led Binance Smart Chain token aimed at reducing the supply of popular cryptocurrencies with excessively high total supplies, burned 51.7 million LUNC tokens. The project’s focus is to reduce LUNC’s circulating supply, paving the way for the asset’s price to climb higher.
Alright, everyone, we just burned 51.7M #LUNC and 2.1B #CREMAT!!
— Cremation Coin Weekly LUNC Burns (@Cremation_Coin) March 7, 2023
We jumped up from number 17 to number 8 on the #luncdash chart!
Thank you to everyone who supports us! If we work together, we can accomplish anything. I truly believe this. #lunccommunity #luncarmy $lunc pic.twitter.com/R0h3zpwMV8
Typically, with a reduction in circulating supply, if demand increases or remains unchanged, there is an increase in the asset’s price.
LUNC could find support at $0.00014 before recovery
LUNC started 2023 with an uptrend as seen in the LUNC/USDT four-hour price chart below. The trend reversed and Terra Luna Classic made lower highs and lower lows, in its downtrend starting February 2023.
LUNC is currently trading sideways in its short-term downtrend. LUNC price is in a descending channel and below the three Exponential Moving Averages (EMAs) at 50, 100 and 200-days.
Terra Luna Classic token is close to its 78.6% Fibonacci Retracement at $0.000143. The next key support level for LUNC is $0.000133 and $0.000126 where the token spent considerable time in early 2023 and the end of 2022.
LUNC/USDT 4H price chart
As seen in the chart above, LUNC faces two key resistances in its recovery, one at $0.000147 and the other at $0.000158. These levels have acted as support during LUNC’s uptrend, therefore, flipping these resistance levels to support could fuel a bullish thesis for Luna Classic.
The Relative Strength Index (RSI) is currently 33.44, close to the oversold level. LUNC has the potential to recover, it remains to be seen whether the token will make a comeback above resistance at $0.000147.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
