Terra Luna Classic token burn sees massive spike, will LUNC price begin its recovery soon?

Luna Classic witnessed a massive burn of 51.7 million LUNC tokens by the Cremation Coin project.
LUNC is currently trading sideways in a downtrend that started in February 2023.
LUNC could find support at the 78.6% Fibonacci Retracement at $0.000143, before the token begins its recovery.

Terra Luna Classic (LUNC) witnessed a massive spike in its token burn with the contribution of the Cremation Coin project. The project burned a total of 51.7 million LUNC tokens, one of the largest burn initiatives till date. The token is currently in a downtrend since February.

Also read: Will crypto catch up with the rising S&P 500 after record levels of FUD?

Terra Luna Classic token witnesses massive burn initiative

Cremation Coin, a community-led Binance Smart Chain token aimed at reducing the supply of popular cryptocurrencies with excessively high total supplies, burned 51.7 million LUNC tokens. The project’s focus is to reduce LUNC’s circulating supply, paving the way for the asset’s price to climb higher.

Alright, everyone, we just burned 51.7M #LUNC and 2.1B #CREMAT!!

We jumped up from number 17 to number 8 on the #luncdash chart!

Thank you to everyone who supports us! If we work together, we can accomplish anything. I truly believe this. #lunccommunity #luncarmy $lunc pic.twitter.com/R0h3zpwMV8
— Cremation Coin Weekly LUNC Burns (@Cremation_Coin) March 7, 2023

Typically, with a reduction in circulating supply, if demand increases or remains unchanged, there is an increase in the asset’s price.

LUNC could find support at $0.00014 before recovery

LUNC started 2023 with an uptrend as seen in the LUNC/USDT four-hour price chart below. The trend reversed and Terra Luna Classic made lower highs and lower lows, in its downtrend starting February 2023.

LUNC is currently trading sideways in its short-term downtrend. LUNC price is in a descending channel and below the three Exponential Moving Averages (EMAs) at 50, 100 and 200-days.

Terra Luna Classic token is close to its 78.6% Fibonacci Retracement at $0.000143. The next key support level for LUNC is $0.000133 and $0.000126 where the token spent considerable time in early 2023 and the end of 2022.

LUNC/USDT 4H price chart

As seen in the chart above, LUNC faces two key resistances in its recovery, one at $0.000147 and the other at $0.000158. These levels have acted as support during LUNC’s uptrend, therefore, flipping these resistance levels to support could fuel a bullish thesis for Luna Classic.

The Relative Strength Index (RSI) is currently 33.44, close to the oversold level. LUNC has the potential to recover, it remains to be seen whether the token will make a comeback above resistance at $0.000147.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.