Terra Luna Classic (LUNC) Price Consolidation After Token Burn, Future Outlook Depends on Continued Burns

After a burn of 320 million tokens last week, Terra Luna Classic (LUNC) has seen a stable price performance. The burn aims to reduce LUNC's oversupply

Terra Luna Classic (LUNC) price has seen consolidation in the past 24 hours, following a burn of 320 million LUNC tokens last week. The burn aims to reduce LUNC’s oversupply, which soared to 6.9 trillion after Terra’s collapse.

Traders are optimistic that these burns could lead to price appreciation, as reduced supply increases demand. After a burn of 320 million LUNC tokens last week, traders are hoping for a price increase.

LUNC Price Consolidates After Token Burn

The price of Terra Luna Classic (LUNC) experienced consolidation on Friday, with a minimal change in price. At the time of writing, LUNC trades at $0.00008975, up by 0.09% over the past 24 hours.

The recent burn of 320 million LUNC tokens is part of the Terra Classic network’s strategy to reduce the circulating supply and regain stability. Following Terra’s collapse earlier this year, LUNC’s price plummeted, and its circulating supply soared to trillions.

As a result, the LUNC price action is still considered neutral and trades within a tight range. The token price is largely affected by the recent burns, with support at $0.00008827 and resistance at $0.00009051. Traders are expecting a breakout as supply decreases.

Future Price Outlook Amid LUNC Burn Initiatives

Terra Luna Classic’s price is expected to experience a breakout in either direction as the token burns continue. If the burns proceed at this rate, traders are expecting a price increase.

However, the LUNC price is also affected by external factors, such as a court-ordered LUNC burn as part of their $4.5 billion SEC settlement. If Terraform Labs complies by the end of the month, that could cause a supply shock and raise prices.

But if they fail to comply, the SEC could fine them and halt the project. In that case, LUNC might not burn as quickly, and the price could stall. As such, analysts predict LUNC to see a tight range until major burns or external factors change market sentiment.

A breakout beyond the $0.00009051 resistance could signal renewed bullish momentum, especially if supply continues to decrease from strategic burns. But if LUNC fails to maintain the current burn pace, it may struggle to sustain price gains.

Technical Analysis and Market Trends

The technical indicator for LUNC is currently showing a neutral technical. The RSI is at 51.09, indicating balanced buying and selling pressure.

The MACD also reveals weak bearish momentum in which the MACD line is just below the trend line. Price consolidation is expected in the short term as LUNC remains in a tight range. However, there is a chance for a breakout if the token supply continues to shrink from strategic burns.

Traders will be keeping an eye out to see if the $0.00009051 resistance level will be broken in the coming days. If the burns work as planned, buyers could return to LUNC, and the prices could skyrocket by year-end.