LUNC Price Holds Above Key Resistance, Market Analysts Suggest Breakout May Be Near

LUNC Price has gained attention as its price holds above a previous resistance level. Market analysts suggest that a price breakout may be near, with some predicting a potential 588%

Key Insights:

LUNC’s price has remained above a previous resistance level, signaling potential bullish momentum.

The increase in trading volume, combined with the ongoing token burns, has fueled speculation about LUNC’s next move.

Some analysts predict that a price breakout may lead to a 588% surge.

The price of Terra Luna Classic (LUNC) has been a topic of interest among cryptocurrency traders and analysts, especially as the token’s price action continues to show potential for a breakout. As the community actively burns the tokens to reduce the circulating supply, the focus remains on how this will affect the token’s value.

The recent price movements have kept LUNC above a prior resistance level, which is a bullish sign. If this trend continues, we might see a sharp upward movement in the token’s price. Another factor to consider is the increase in trading volume, which is often a key factor in confirming a breakout.

Crypto market expert Javon Marks has also pointed out that LUNC’s current price action suggests a possible breakout, especially with volume approaching a critical level. “This could be what sparks the results of the price breakout,” said Marks.

If this occurs, some forecasts indicate that LUNC may see a rise of over 588%, pushing its value significantly higher.

However, another analyst, WSB Trader Rocko, recently highlighted that LUNC has now broken a key trendline at a major support level. His analysis has sparked further discussion about a possible bullish move.

Terra Luna Classic Community Burns Over 405B LUNC Tokens

The Terra Luna Classic community has been actively burning LUNC tokens to reduce the circulating supply. According to recent data, more than 405 billion LUNC and 3.4 billion USTC have been burned since May 2022.

At the time of writing, LUNC is valued at $0.00006088, showcasing a 1.41% increase over the past day and 7.60% plummet over the last week.

The largest contributor to the burn mechanism is Binance, which announced a burning of 760 million LUNC. Binance has also employed the burn of transaction fees whereby the collected fees are used to effect deflation in LUNC. This is due to the increase in tokens’ burning by the exchange in a bid to keep the investors interested in LUNC.

However, around 5.45 trillion of LUNC tokens are still out in the market. Though the burns do assist with moderating supply, the effect on price has been minimal to this point. Nonetheless, if the burn rate is consistently high, it could contribute to a relative scarcity and may thereby contribute to future growth in price.

LUNC Technical Analysis Shows Mixed Signals

According to technical analysis, this price has found its resistance near the Ichimoku Cloud level, and any breakout above it leads to the upward move. Further, the RSI is close to oversold levels, particularly above 50, which indicates that price change may be on the rise if the upward pressure is strong enough.

Since December 2024, the LUNC price has been moving down with lower highs and lows patterns seen on the price chart. The Moving Average Convergence Divergence (MACD) is also depicting low momentum, whereby the MACD line is situated above the signal line only by a small margin. Thus, if the volume of trading increases, it would mean that it’s shifting to the bulls’ favor.

The Bollinger Bands point to LUNC’s price testing the lower boundary as a sign that the asset stands at an oversold position. A price recovery may happen when buyers decide to enter the market. The price needs to surpass the robust resistance at $0.000066 to $0.000069 before LUNC can validate its upward movement.

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.