LUNA +8.13% 24H Rise Amid Token Burns and Do Kwon Sentencing Looms

LUNA rose by 8.13% within 24 hours to reach $0.1133 as of DEC 6 2025, with a 60.53% increase in seven days, 50.97% in a month, and a 73.72% drop in one year. The token’s price movement has coincided with an uptick in on-chain activity, including a surge in token burns and a major legal development regarding its founder.

Token burn activity intensifies ahead of sentencing

Luna Classic’s price rebound has coincided with a notable increase in token burns. According to Luncmetrics, over 959 billion LUNC have been burned in December, including 182.09 million burned on Friday alone. This burn activity has effectively reduced circulating supply and contributed to a perceived artificial inflation in demand.

The burn activity has occurred alongside a critical legal milestone. Do Kwon, co-founder of Terraform Labs and central figure in the Terra/Luna collapse, is scheduled to face sentencing on December 11. He pleaded guilty to charges including commodities fraud, securities fraud, and wire fraud in August.

Legal developments remain central to market sentiment

The U.S. prosecutors have recommended a 12-year prison sentence for Kwon, citing the scale of the $40 billion fraud. South Korean authorities have sought a 40-year sentence. Kwon’s legal team has argued for a lighter sentence, citing external factors that contributed to the crash, including third-party trading behavior and technical vulnerabilities.

The legal uncertainty surrounding Kwon has created a volatile backdrop for LUNA. Investors remain cautious about the potential for a so-called “bull trap,” where rising prices appear to signal recovery but may be short-lived if the legal developments sour investor sentiment.

Technical indicators remain bullish

Despite the legal uncertainty, LUNA has shown strong technical performance. The token is forming a potential bullish Marubozu candle on the daily logarithmic chart, with a near 20% price gain in the 24 hours up to Friday. LUNA is currently testing key resistance at the R1 Pivot Point of $0.00003914.

If LUNA clears this level, the next potential target is $0.00005107 (R2), where it could approach the $0.00005000 psychological level. Momentum indicators remain supportive: the RSI is at 66, indicating a move toward overbought territory, while the MACD has shown a steady rise and increasing bullish momentum.

However, a breakdown below the central Pivot Point at $0.00003241 could see LUNA retest the December 1 low of $0.00002485, introducing significant downside risk.

Analysts project that the combination of token burn activity and Kwon’s legal proceedings will continue to influence price action in the near term.