- Terra Classic has torched over 3 billion LUNC in its deflationary push, pushing prices up.
- There are positive projections that LUNC will keep up its growth streak.
The price of Terra Classic is up 30% following a recent token burn of over 3.1 billion LUNC. This upswing has caught the attention of investors, as bullish market trends dominated December. Questions now abound about whether more bullish momentum is on the horizon for LUNC.
The Terra Classic 3.1 Billion LUNC Burn
Terra Classic recently incinerated 3.1 billion tokens as part of continuous efforts to reduce LUNC’s circulating supply. This has prompted renewed interest in the token, a key factor igniting the latest surge in the price.
The system has wiped out 392.84 billion LUNC tokens since May 13, 2022. This has drastically reduced the amount of the coins in circulation. The circulating supply now stands at 5.51 trillion LUNC tokens, down from the total supply of 6.51 trillion.
The recent burn is seen as a calculated attempt to make the token more scarce, frequently increasing prices. The 3.1 billion token burn in the past week has added to the increasing confidence about LUNC’s market potential.
CNF reported that the token burn event is a directive from the US Securities and Exchange Commission (SEC) as Terraform Labs ceases operations. Binance, a leading crypto exchange, also supported the Terra Classic community, burning 64.47 billion tokens in September.
The price of LUNC shows signs of an upward trend, experiencing over a 30% increase in the last 24 hours to trade at $0.00017. Within the past week, LUNC rose 42.46%, and 100.59% in the past month. This is in line with the ongoing bullish rally in the broader digital currency ecosystem.
The recent price action shows that LUNC has broken through its immediate resistance level of $0.000163. As a result, the cryptocurrency may target the $0.0001 mark next. If bullish sentiment persists, the price may rise much more and hit $0.001 in the next few weeks.
What Next For LUNC
Technical indicators also support the projection of further growth for LUNC. The Moving Average Convergence Divergence (MACD) indicator shows a minor positive trend as the MACD line crosses above the signal line.
This difference indicates greater buying pressure, which supports the case for a sustained higher trend. The Relative Strength Index (RSI) also stands at around 78, signaling that the asset is in extended buying territory. Continued supply decrease and optimistic market circumstances may increase LUNC’s price, potentially pushing it to new highs.
Crypto analyst Candle Calls has speculated that the Terra Classic price can reach new highs of between $1 and $5. The analyst’s prediction mirrors the bullish sentiment many in the community share.
As disclosed in a CNF article, the optimism is driven by anticipations of favorable market conditions and developments within the Terra Classic ecosystem.
