LUNC Crypto Price Performance Post This Token Burn

Terra Classic's (LUNC) price has remained almost the same after a massive burn of 290 million LUNC tokens last week.

Terra Classic (LUNC) price remained almost unchanged after a massive burn of 290 million LUNC tokens last week. However, traders and investors have expectations for a bullish momentum post this burn. LUNC crypto price has shaped a bullish daily pattern and is wandering in breakout territory.

As per recent updates, nearly 290,023,224.083 LUNC tokens were burned from the total supply. Before the collapse of the Terra ecosystem, the total supply of LUNC crypto stood at 6.9 Trillion.

This massive burn reduced the oversupply in the market and increased the value of the remaining tokens. Meanwhile, the community members are still waiting for the next round of burns.

LUNC crypto price showcased a consolidation in price after forming a bullish daily pattern. At press time, the crypto was valued at $0.00009063 with an intraday loss of 0.24%. The market capitalization was observed at $517.09 Million, and the 24-hour trading volume was seen at $16.75 Million.

The LUNC price had been struggling between the levels of $0.0000820 and $0.0000920 since the beginning of this month.

Terra Classic Price Awaits A Direction

The market conditions and the future of ongoing token burns are the main factors that determine Terra Classic price. However, the price has stayed steady thus far.

If the burns continue at this pace, traders are anticipating a price increase. On the other hand, a court-ordered LUNC burn is also set to impact the price largely.

This burn is a part of their $4.5 Billion settlement with the SEC. If Terraform Labs complies by the end of the month, there may be a supply shock and a price increase. But breaking this rule could cause penalties that may stall the project.

As per analysts, LUNC crypto will continue trading in a narrow range. This is until any major burns or external events alter the market sentiment.

If the supply keeps declining, a breakout above the resistance at $0.00009051 could indicate fresh bullish momentum. However, if LUNC fails to maintain the current burn rate, it might struggle to sustain any price gains.

LUNC Price Forms Ascending Triangle on Daily Chart

On a daily time frame, the LUNC price forms an ascending triangle pattern. Moreover, the price has been wandering in the crucial zone of breakout from the pattern.

The price has been struggling below a significant resistance level at $0.0000950. If the digital asset price manages to trigger a breakout from the ascending triangle, it could be bullish.

In case the LUNC crypto price sustains over the major resistance level, buyers might dominate and past losses could be recovered.

Contrarily, if the Terra Classic price faces resistance from the significant resistance level, it may remain in a consolidation phase. Once the price loses the ascending trendline, buyers may lose momentum.

Here, most traders and investors might prefer to book profit, which could lead to strong selling pressure.

Regarding the technical indicators, the MACD generated a bearish crossover with the Signal line. However, it is still trading above the Zero line, which could be tempting for buyers.

The RSI slipped below the RSI-based moving average, which could be a bearish signal.

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice.

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