Terra Luna Classic (LUNC) Price Consolidate at a Crucial Support as Weekly Burn Rate Soared and a Key Community Vote Began

Terra Luna Classic (LUNC) was trading at $0.000060 on Wednesday, where it has remained over the past few days. The token has dropped by over 66% from its December high.

Terra Luna Classic (CRYPTO: LUNC) token was seen trading at a crucial support level on Wednesday as the weekly burn rate remained elevated and a key community vote got underway.

What Happened: LUNC was trading at $0.000060 at the time of writing, where it has remained for the past few days. The token has slid by over 66% from its December high.

LUNC continued to decline even as more coins were incinerated. According to LUNC Metrics, more than 727 million tokens were burned over the past seven days.

These burns brought the total number of tokens destroyed since inception to over 407 billion.

Most of this week’s burns came from the Luna Foundation Guard, which burned over 211 million LUNC tokens and 1.7 billion TerraClassic USD (CRYPTO: USTC) tokens on Wednesday.

“BREAKING: The @LFG_org wallet has been BURNED! 🔥🤯211,577,500 $LUNC & 1,754,725,793 $USTC are now gone! Are we about to witness the greatest comeback in #Crypto history. Stay tuned! 💎🤲🏻 #LuncBurn #Binance @cz_binance,” LUNC news platform Station Wolf announced on Twitter.

What Contributes to LUNC Price in 2024: Key Things to KnowNow: LUNA is a token that is used to secure the cryptocurrency network. It is also used to pay for fees and other transactions on the network. The more LUNA that is staked, the more secure the network becomes.

LUNA is also used to mint and burn TerraUSD (USDT), the stablecoin of the Terra ecosystem. Whenever someone mints or burns UST, an equal dollar value of LUNA is burned or minted respectively.

Earlier this week, a key community vote began as some users proposed a phased approach to establishing on-chain liquidity for USD Coin (USDC). The goal is to create USDC/LUNC liquidity pools to improve on-chain liquidity, provide decentralized finance utility, reduce reliance on centralized exchanges, and generate arbitrage opportunities.

The pair would also help generate tax volume and increase the LUNC burn rate.

LUNC Price Technical Analysis: The daily chart shows that LUNC stalled at a key support level, one it has failed to break below multiple times since July last year. This suggests that bears are hesitant to push LUNC lower at current levels.

LUNC remains below the 50-day moving average and the descending trendline connecting the swing highs since January 19. This indicates the formation of a descending triangle, a popular bearish continuation pattern.

More downside would be confirmed if the price breaks below the horizontal support that connects the lowest level since July 24, 2024. A break beneath that zone could push LUNC to the next key support at $0.000047, approximately 22% below the current level.