The price of Terra Luna Classic has reached a critical support level amid a rise in token burn rates, prompting mixed market signals.
Details on LUNC token burns
Terra Luna Classic was trading at $0.000070 on Thursday, just above the critical support level of $0.000054. The token burn process continues to accelerate, reducing the circulating supply. In the last seven days alone, the network has incinerated 382.4 million tokens, bringing the total burns to over 403 billion since inception.
Binance's role in supporting Terra Luna Classic
Binance, one of the largest global exchanges, conducts monthly token burns. To date, it has incinerated over 70.8 billion tokens, thereby supporting Terra Luna Classic. Binance continues to list the token and has recently backed its minor upgrades by temporarily suspending deposits and withdrawals.
LUNC price analysis and market signals
The weekly chart clearly shows that the Terra Luna Classic has been in a bearish trend for the past few years, hitting an important support level. The current price movement may indicate either the formation of a bullish 'quadruple bottom' pattern or a bearish 'descending triangle'. A break below the support level could signal further decline, whereas a breakout above the trend line could indicate a potential rise.
Despite the circumstances surrounding Terra Luna Classic, there remains potential for movement in either direction. The future actions of supporting structures like Binance could play a crucial role in the asset's trajectory.
