Terra Classic (LUNC) Burns Its Way to a Potential Price Rally
Terra Classic (LUNC) is showing signs of a potential price surge, driven by strategic token burns. Currently trading at $0.0001227, LUNC has gained 3.59% over the past 24 hours. This upward movement began at $0.0001186, peaking at $0.000124 before slightly retracing to its current price. A significant increase in trading volume, up 76.61% to $41.29 million, suggests strong buying interest and the potential for further gains.
In the short term, the price action indicates bullish sentiment. The immediate support level around $0.000120 has been tested multiple times, demonstrating substantial buying interest and demand. The major support level at $0.0001186, the day’s starting price, provides a solid base after successfully withstanding earlier downward pressure.
On the resistance side, the immediate level at $0.000124 was touched before the price slightly retraced, indicating seller presence. Major resistance levels may emerge at the psychological thresholds of $0.000125 and $0.000130.
The upward movement, combined with increased volume, confirms the bullish momentum. The recent peak and pullback form a higher high and higher low pattern, suggest the possibility of further gains.
Analyzing the burn rate chart reveals a key correlation between token burns and price trends. From early February to mid-March saw a low and stable burn rate, resulting in a relatively stable price with minor fluctuations.
The lack of significant supply reduction during this period meant no noticeable price rise. However, from mid-March to early April, a sharp increase in the burn rate indicated a large volume of LUNC was burned, likely causing a price spike due to increased scarcity.
The burn rate continued to rise at a slower pace from early April to late April, supporting a gradual price increase or stabilization at a higher level. Another noticeable increase in the burn rate occurred in early May, likely resulting in an upward push in price as the market reacted bullishly.
