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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 showsthat 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.
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