The Terra Luna Classic token is showing signs of bottoming after crashing by over 90% from its all-time high.
Terra Luna Classic (LUNC) price has found strong support at $0.00005385, where it has failed to drop below since its inception. That is a sign that the coin may be on the cusp of a bullish breakout.
Potential catalyst for LUNC price
LUNC is hitting a 406 billion token burn milestone. Data shows that the network incinerated over 280 million tokens in the last seven days, bringing the total tokens burned to 406 billion.
Over 336.2 billion LUNC tokens have moved to the burn wallet, while almost 70 billion of these coins have been burned on-chain. Most of these burns were from Terraform Labs, which a U.S. bankruptcy court ordered.
Binance, the biggest crypto exchange, has also been the most active LUNC burner in the industry. It has burned over 71 billion tokens in the past three years, and has consistently supported all of its upgrades.
Meanwhile, more LUNC holders are staking them. That’s an optimistic sign that, perhaps, the token will bounce back. The LUNC staking ratio has risen to 15.85%. That’s its highest level since Nov. 10, 2024.
A high staking ratio, especially when a coin is falling, is a highly bullish sign.
LUNC price shows bottoming signs
The weekly chart shows that the Terra LUNA Classic price dropped to a low of $0.000054 this month. This was a notable level as the coin failed to drop below it in July and September last year. It also failed to move below the price in 2024.
The last time LUNC’s price dropped below this level was in June 2022, when it dropped to a low of $0.00003440. This drop turned out to be a false breakdown, too.
Therefore, there is a likelihood that the Terra Luna Classic price has formed a quadruple bottom — a popular bullish reversal sign. A bullish breakout may see it jump to the next key resistance at $0.0001797, the highest swing in November last year.
This price is about 180% above the current level. A drop below that support level will signal more downside to $0.000034.
LUNC’s history
The LUNC token, originally known as the Luna token, was created by Do Kwon and Daniel Shin, co-founders of Terraform Labs.
Terraform Labs was based in South Korea, and they launched the Luna token as part of the Terra blockchain ecosystem. The project aimed to create a stablecoin (TerraUSD, or UST) through an algorithmic mechanism tied to Luna. After the UST stablecoin de-pegged from the U.S. dollar in May 2022, the value of Luna (now LUNC after a rebranding) crashed. This led to a massive loss in value and the collapse of the Terra ecosystem.
Afterward, a hard fork was created, leading to the introduction of Terra 2.0, and a new token was issued to replace the old one.
