Terra Luna Classic (LUNC) price crossed a crucial resistance level

The Terra Luna Classic token crossed a crucial resistance level ahead of two crucial milestones in its network.

Terra Luna Classic (LUNC) price has crossed a crucial resistance level ahead of two key milestones for its network.

What Happened: The Terra Luna Classic token rose to a high of $0.0643, its highest level since March 28. The gains come as the network’s burn rate continues to accelerate. According to LUNC Metrics, the network has burned 205.3 million tokens over the past seven days.

Since May 2022, LUNC has burned a total of 408.2 billion tokens, bringing the circulating supply down to 5.45 trillion. At the current pace of burns, which are expected to surpass 410 billion early next month, the remaining circulating supply could be reduced by nearly 7%.

A portion of LUNC tokens are expected to be incinerated next week when Binance executes its monthly token burn. The exchange has become the leading LUNC burner, having destroyed over 72 billion tokens. Binance contributes by burning 50% of its spot and margin trading fees related to LUNC.

The actual number of tokens burned each month varies based on trading volume. Earlier this month, Binance burned 521.9 million LUNC tokens, compared to 760 million in the previous month.

More LUNC holders are also choosing to stake their tokens. Currently, 1.038 trillion LUNC, or about 15% of the circulating supply, is being staked. This marks a significant increase from 13% on the same day last year.

LUNC Price Technical Analysis: The daily chart shows that LUNC has bounced sharply in recent days. This move came after dropping to a key support level of $0.000057, which previously held support in July, August, February, and March.

The token has now moved above a descending trendline, connecting the highest swing points since January 20, invalidating a descending triangle pattern that had been forming.

Additionally, the LUNC price has crossed above its 50-day moving average. Notably, the Awesome Oscillator and the MACD indicators have both moved above the zero line, continuing to display a bullish divergence pattern.

If this momentum continues, the LUNC price could rally to the next key resistance level at $0.0001, which would represent a 60% gain from the current price.