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LUNC Plummets 21% Despite 1.6 Billion Token Burn

Coin WorldThursday, Feb 6, 2025 3:48 pm ET

1min read

Terra Luna Classic (LUNC) has experienced a significant 21% drop in price over the past week, despite the burning of 1.6 billion LUNC tokens. This decline has raised concerns among investors about the future trajectory of LUNC's price.

The recent market recovery has not been enough to boost LUNC's price, which has been on a downward trend for several months. The weekly chart shows that LUNC's price has fallen to $0.00004665, its lowest value in recent years. Although token burns have been consistently occurring, their impact on LUNC's price remains uncertain. While previous large token burns have led to short-term price increases, the recent 1.6 billion LUNC burn failed to spark a significant rally, instead causing the price to plummet.

Analysts are divided on the potential impact of such a large burn on LUNC's price. Some believe that it could potentially increase the price by 50%, while others suggest that it could lead to a further decline, depending on overall market sentiment and trends.

As the crypto market continues to rise with the return of Donald Trump to the White House, LUNC's price remains under intense bearish pressure. Currently, the Terra Luna Classic price is at $0.00006124, having dropped over 1.9% in the last 24 hours. The LUNC/USDT trading pair remains below $0.00007, indicating strong selling pressure from bearish traders. If the price stays below the EMA20 trend line on the 1-hour chart, sellers could attempt to push it down towards $0.000048.

The Relative Strength Index (RSI) remains just below the midline at 39, suggesting a potential retest of the resistance level. However, if the price stabilizes above $0.00008, it could shift the advantage to the buyers, potentially driving the price up to $0.000108.

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