It’s been a tough week for cryptocurrencies, with most of them dropping sharply after Donald Trump announced new tariffs on Mexico, China, and Canada. However, they started to recover when the tariffs on Mexico and Canada were temporarily halted on Monday. Despite this, the price of LUNC didn’t bounce back as expected, even though 1.6 billion LUNC were burned last week. This has led to a 21% drop in LUNC price over the last seven days.
Terra Luna Classic Struggles Amid Market Recovery
The price of Terra Luna Classic (LUNC) has dropped by 21% in the last seven days despite the overall market recovery. LUNC price declines despite a huge burn of 1.6 billion LUNC in just one week. Investors are now wondering if this momentum can drive LUNC’s price even lower, possibly leading to a 50% drop as bearish pressure continues to surge.
The price of LUNC had a significant week after Binance carried out a large-scale token burn. Over the past 7 days, 1.68 billion LUNC tokens were destroyed, increasing the total number of burned tokens to over 402.57 billion.
A token burn happens when tokens are permanently removed from circulation by placing them in an inaccessible address. This is often done to increase the value of the remaining tokens, similar to how companies buy back shares to boost their stock price.
The weekly chart indicates that LUNC’s price has been declining sharply over the last few months. It fell to $0.00004665 this week, marking the lowest value in recent years.
Although tokens have been consistently burned, it’s still unclear how this affects LUNC’s price. In the past, big token burns have led to short-term price increases, but the recent 1.6 billion LUNC burn failed to bring any significant rally in the price chart. Rather it has plunged the LUNC price.
Analysts believe that, depending on overall market sentiment and trends, such a large burn could potentially increase LUNC’s price by 50% or plunge it further.
What’s Next for LUNC Price?
As Donald Trump returns to the White House, the crypto market is seeing a rise. However, the recent market crash has put LUNC price under an intense bearish pressure. Currently, the Terra Luna Classic price is at $0.00006124, having dropped over 1.9% in the last 24 hours.
The LUNC/USDT trading pair remains under $0.00007, showing strong selling pressure from bearish traders. This price point may continue to be a significant barrier, as short-term holders (STHs) might opt to sell off their positions at this level.
If the price stays below the EMA20 trend line on the 1-hour chart, sellers could attempt to push it down towards $0.000048.
With the Relative Strength Index (RSI) remaining just below the midline at 39, there could be a retest of the resistance level. Should the price stabilize above $0.00008, it could shift the advantage to the buyers, potentially driving the price up to $0.000108.
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