Gradual Growth of Terra Luna Classic

Since hitting its August low, the price of Terra Luna Classic (LUNC) has been steadily increasing, with analysts suggesting the token has more room for growth. This week, LUNC reached $0.000129, its highest level since March this year.

Crypto analysts are optimistic that the price could climb further, especially if the bullish sentiment in the crypto market continues.

Positive Factors Supporting LUNC's Growth

Popular crypto analyst Miles Deutscher stated on X that he remains bullish on LUNA and LUNC. His confidence stems from several factors:

  1. Listing on Binance, which boosts investor confidence.

  2. Bullish chart patterns, signaling potential upward momentum.

  3. Meme appeal, which draws attention from the broader crypto community.

Token Burning Reduces Supply

A key driver for LUNC's price growth is the ongoing token burning mechanism, which reduces the total supply and increases the value of remaining tokens. According to LUNC Metrics, 1.34 billion tokens were burned in the past seven days.

In total, the network has now burned over 390 billion tokens, leaving the circulating supply at 6.51 trillion.

A significant burn occurred earlier this month when Terraform Labs burned 251 billion tokens as part of bankruptcy proceedings. The rising LUNC staking ratio, which now approaches 16%, indicates that many investors are holding the token for the long term.

LUNC Chart Suggests Further Gains

LUNC chart | Source: TradingView

The daily chart for Terra Luna Classic indicates a slow upward trend since hitting its low of $0.000054 several months ago. The price has formed a cup-and-handle pattern, with the upper resistance at $0.000129, a well-known bullish continuation signal.

Based on the depth of the cup, the price could rise to $0.0002055, representing a 75% increase from the current level. This target lies just above the 38.2% Fibonacci retracement level at $0.00020.

Technical Indicators Support a Bullish Outlook

Further upside potential is reinforced by these technical factors:

  1. Price trading above the 50-day and 100-day moving averages, indicating a positive trend.

  2. Rising Relative Strength Index (RSI), reflecting sustained bullish momentum.

However, if the price drops below the 100-day moving average at $0.000095, it could invalidate the bullish outlook.

LUNC continues to attract investor interest, with speculators eyeing its potential for further growth.

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