Terra Luna Classic token consolidated at a crucial support level as the weekly burn rate soared and a key community vote began.
Terra Luna Classic (LUNC) was trading at $0.000060 on Wednesday, where it has remained over the past few days. The token has dropped by over 66% from its December high.
LUNC continued to slide even as more coins were incinerated. According to LUNC Metrics, over 727 million tokens were burned in the past seven days. These burns brought the total number of tokens destroyed since inception to over 407 billion.
Most of this week’s burns came from the Luna Foundation Guard, which burned over 211 million tokens on Wednesday. It also incinerated more than 1.7 billion TerraClassic USD tokens.
Terraform Labs established the Luna Foundation Guard to support the growth of the Terra ecosystem, particularly its stablecoin.
LUNC price has also remained flat after some users proposed to introduce a phased approach to establish an on-chain liquidity for the USD Coin (USDC).
The goal is to set up USDC/LUNC liquidity pools to improve on-chain liquidity, provide decentralized finance utility, reduce reliance on centralized exchanges, and create arbitrage opportunities. Additionally, the pair would help generate tax volume and increase the burn rate.
LUNC price technical analysis
The daily chart shows that Terra Luna Classic has stalled at a key support level, one it has failed to break below multiple times since July last year. This suggests that bears are hesitant to push LUNC lower at current levels.
LUNC remains below the 50-day moving average and the descending trendline connecting the swing highs since Jan. 19. This indicates the formation of a descending triangle, a popular bearish continuation pattern.
More downside would be confirmed if the price breaks below the horizontal support that connects the lowest level since July 2024. A break beneath that zone could push LUNC to the next key support at $0.000047, approximately 22% below the current level.
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