LUNA Up 10.32% as Token Burns and Legal Developments Impact Market

On DEC 6 2025, LUNA rose by 10.32% within 24 hours to reach $0.1114, LUNA rose by 63.77% within 7 days, rose by 54.02% within 1 month, and dropped by 73.19% within 1 year. The price surge coincides with significant token burn activity and legal proceedings against Do Kwon, the founder of Terraform Labs, related to the $40 billion collapse of the Terra and Luna tokens.

Token Burns and Legal Uncertainty Drive Investor Sentiment

Over 959 billion LUNC tokens have been burned in December, significantly reducing the available supply and artificially inflating demand. As of Friday, December 6, an additional 182.09 million LUNC tokens were burned. This token burn activity is seen as a catalyst for the current upward momentum in LUNC, as reduced supply can create upward pressure on price.

However, the legal developments surrounding Do Kwon remain a looming factor. Kwon is scheduled to face sentencing on December 11 for commodities fraud, securities fraud, and wire fraud. U.S. prosecutors have requested a 12-year prison sentence, while his defense has argued that a term of up to five years is appropriate. The legal proceedings have raised concerns among investors, with some cautioning that the outcome could trigger volatility or even a bull trap.

Technical Indicators Show Strong Bullish Momentum

LUNA Classic has formed a potential bullish Marubozu candle on the daily logarithmic chart, reflecting nearly 20% gains in recent days. The price has been recovering for four consecutive days and currently faces resistance at the R1 Pivot Point of $0.00003914. A breakout above this level could push the token toward the R2 Pivot Point at $0.00005107, which is near the $0.00005000 psychological price level.

The Relative Strength Index (RSI) is currently at 66, indicating a sharp move toward overbought territory. The indicator has shown a bullish divergence with price lows recorded on November 21 and December 1. Meanwhile, the Moving Average Convergence Divergence (MACD) remains above its signal line, with expanding green histogram bars reinforcing the bullish momentum.

Risks of a Sell-Off Below Key Support Levels

On the downside, LUNA faces critical support at the center Pivot Point of $0.00003241. A breakdown below this level could trigger a retest of the December 1 low at $0.00002485. Investors are closely watching this level as a potential entry point for short-term traders or as a signal to reassess long-term positions.

Given the combination of supply-side adjustments through token burns and the pending legal outcome for Do Kwon, the market remains in a delicate balancing act between optimism and uncertainty.