Terra Luna Classic (LUNC) Drops to 8-Month Low Despite Surpassing Key Burn Milestone

Terra Luna Classic (LUNC) dropped to a low of $0.00007045 this week, marking its lowest level since August 2024 and a decline of 55% from its December highs.

Terra Luna Classic (CRYPTO: LUNC) price dropped to a five-month low this week despite the network achieving a key burn milestone.

What Happened: Terra Luna Classic reached a low of $0.00007045 this week, its lowest level since August 2024, and marked a 55% decline from its December highs.

Meanwhile, LUNCMetrics highlighted that the network surpassed the 400 billion burn milestone this week. Over 400.6 billion LUNC tokens have been incinerated to date, and the trend continues.

In the last seven days alone, 1.45 billion tokens were burned, leaving 6.5 trillion coins still in circulation.

Terraform Labs, which filed for bankruptcy protection in 2024, remains the largest contributor to token burns, having destroyed over 259 billion tokens as part of a U.S. court order tied to its bankruptcy proceedings.

Binance has burned over 70 million tokens, while DFLUNC, LunaticsToken, and MEXC are among the next major contributors.

Burning, in theory, reduces the circulating supply of a cryptocurrency, which could increase its price by making the remaining tokens rarer.

One factor impacting LUNC’s price decline is the increasing number of holders selling their coins. The staking ratio has dropped from nearly 16% in November to 15% today, indicating reduced investor commitment.

Moreover, data showed that more LUNC tokens are being moved to exchanges, with one wallet transferring over 1 billion tokens to Cryptex.

A top LUNC validator, in a detailed thread, attributed these flows to recent market volatility and strategic consolidation by investors.

Significant #LUNC funds are being moved to Cryptex exchange (4dzr) – Including several transactions over 1billion LUNC🤔What does this mean? Let's find out👇🏽👇🏽👇🏽The recent influx of substantial Terra Classic (LUNC) transfers, each exceeding 1 billion tokens, into Cryptex's… pic.twitter.com/hLKqZT362l

Terra Luna Classic, which emerged after the original Terra ecosystem collapsed in 2022, remains a major player in the crypto industry, despite its tribulations, with a market capitalization of over $450 million.

LUNC Price Technicals: The daily chart showed that Terra Luna Classic peaked at $0.0001793 in December before crashing over 57% to reach a low of $0.000076.

The coin has broken below the ascending trendline connecting the lowest levels since August 2024.

Terra Classic’s 50-day and 100-day Exponential Moving Averages have also made a bearish crossover.

It also formed a head and shoulders chart pattern, while oscillators like the Relative Strength Index and the MACD indicators have continued falling.

Given these factors, the LUNC price is likely to continue its downtrend, with the next key target being $0.000050, its lowest point in 2024. This bearish outlook would be invalidated if the price rises above the ascending trendline.