- Summary:
- Terra Luna Classic price has been in a strong downward trend in the past few weeks as the crypto market recoiled.
Terra Luna Classic price has been in a strong downward trend in the past few weeks as the crypto market recoiled. LUNC declined to a low of $0.00013 on November 8. At its lowest point, Luna Classic was down by about 77% from its highest point in September. Its market cap has plunged to about $970 million, making it the 43rd biggest cryptocurrency in the world.
LUNC burn rate increased
Terra Luna Classic, the remnant of Terra, has become a popular cryptocurrency in the past few months despite the collapse of the ecosystem. It has also done relatively better than Terra 2.0, which is the version supported by Do Kwon.
One reason for its popularity is the ongoing burn rate. Burned cryptocurrencies are placed in a vault that cannot be accessed. In November, over 18.4 billion LUNC coins were burned. That was a big increase than the 18.3 billion burned in October and 4.2 billion burned in September. In total, over 28.2 billion LUNC coins have been burned.
Another important catalyst for Terra Luna Classic is that the number of addresses has been increasing. They rose to more than 11,851 in November, which was much higher than the 11,615 at the end of October this year. This is notable because cryptocurrencies went through turmoil in November following the collapse of FTX and Alameda Research.
Terra Luna Classic price forecast
The daily chart shows that the LUNC price crashed hard in November. As it pulled back, the coin formed a falling wedge pattern. In price action analysis, this pattern is usually a bullish sign. With the wedge nearing its confluence level, there is a likelihood that the coin will stage a comeback in the coming days.
Terra Luna Classic price has moved below the 25-day and 50-day moving averages while the MACD has moved below the neutral level. Therefore, I suspect that the coin will likely resume the bullish trend. If this happens, the next key resistance level to watch will be at $0.00030. A drop below the support at $0.00012 will invalidate the bullish view.
