Terra Luna Classic price rose for five consecutive days and crossed an important resistance level as the network nears a crucial 403 billion milestone.
Terra Luna Classic (LUNC) token rose to a high of $0.00007610 on February 11, up by 56% from its lowest level this year.
LUNC’s recent recovery aligns with the performance of most altcoins, which rebounded after bottoming on Monday last week.
A potential catalyst for the Terra Classic price is the ongoing burning action in the network. LUNC Metrics data shows that over 628 million LUNC tokens have been burned in the last seven days.
These burns have brought the total LUNC burned since inception to 402.78 billion, meaning that the figure will cross the 402 billion level later this month. 67.86 billion LUNC tokens have been burned on-chain, while 334.92 billion were donated to the burn wallet, mostly by Terraform Labs.
Binance has grown to become the biggest LUNC burner, incinerating over 70.8 billion tokens. The other top burners are DFLUNC Protocol and LunaticsToken, which have burned 4.52 billion and 1.97 billion tokens, respectively.
Token burns help to create value for a cryptocurrency by reducing the number of coins in circulation. The LUNC community hopes that the burning and staking momentum will ultimately help to address the TerraClassicUSD (USTC) debt crisis and help it to regain its peg.
The USTC token rose by over 21% on Tuesday, moving to $0.01597, meaning that it needs to rise by over 6,100% to reclaim its $1 peg.
LUNC price analysis
The daily chart reveals that the LUNC token price bottomed at $0.00004690 last week, where it formed a hammer candle. A hammer comprises a long lower wick and a small body, and is often a highly bullish pattern.
LUNC price has crossed the upper side of the falling wedge pattern. A wedge has two falling and converging trendlines, often leading to a strong rebound. It has also jumped above the key resistance point at $0.00007140, the lowest swing since September 5.
Therefore, the token will likely keep rising as bulls target the key resistance point at $0.0001025, the 38.2% Fibonacci Retracement level, about 40% above the current level. A drop below the support at $0.00005525 will invalidate the bullish view.
