The Terra Luna Classic (LUNC) price is setting its sights on significant gains as anticipation builds around the upcoming Binance burn event. With recent price jumps and the passing of the USTC burn proposal, investors are optimistic about LUNC’s trajectory. Adding fuel to the fire, the potential redistribution of $1.6 billion in FTX assets could also impact LUNC’s price action, making it one to watch in the coming days.
Key Highlights
- Terra Luna Classic (LUNC) could see a 43% price surge ahead of the Binance burn.
- LUNC and USTC prices have jumped 7% and 18%, respectively, in the last 24 hours.
- The next Binance LUNC burn is scheduled to conclude by October 2, 2024.
LUNC Price Surge: Catalysts at Play
LUNC’s price is showing signs of a strong upward trend, particularly as it recently broke out of a bullish reversal pattern. The upcoming Binance burn event is expected to play a crucial role as a price catalyst. According to Binance’s official LUNC support page, the crypto exchange has adjusted its LUNC burn mechanisms to accelerate the asset’s supply reduction.
Since the inception of LUNC burns by Binance on May 13, 2022, over 64.47 billion LUNC and 4.38 million USTC tokens have been burnt. This reduction in supply has consistently spurred bullish momentum in the LUNC price, and the next burn on October 2, 2024, is expected to follow suit.
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In addition, the Terra Luna Classic community passed a USTC burn proposal on September 27, further sparking bullish investor sentiment. The community has also been exploring ways to eliminate excess supply and restore USTC’s peg to $1, which would likely send LUNC prices soaring.
FTX’s Potential $1.6 Billion Distribution: A Game-Changer for LUNC?
Another major development is the potential distribution of $1.6 billion in assets by FTX to its creditors. While this remains unconfirmed, analysts believe this could have a ripple effect on LUNC, especially if USTC successfully repegs to $1. If this happens, the LUNC price could see even greater upward momentum.
The rumors have led to an interesting correlation between the FTX token (FTT) and LUNC price action, with both assets showing similar movement. However, final confirmation on this development is pending court approval on October 7.
LUNC Price Technical Analysis: Is $0.00015 the Next Target?
Technical analysis of LUNC shows promising signs of a bullish reversal. The price has formed an Inverse Head and Shoulders pattern, a strong indicator of potential upward movement. This reversal pattern suggests that LUNC’s downward trend could shift dramatically, leading to a significant price surge.
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Here are the key support and resistance levels to watch:
- $0.0001: This is the neckline of the inverse head and shoulders pattern, indicating crucial support. A sustained breakout above this level would confirm a bullish trend.
- $0.000142: This is the projected breakout target, representing a potential gain of 43.78%. If LUNC hits this level, it would signal a significant bullish move.
The pattern has already led to a breakout above the neckline, indicating that bullish momentum is in play. If LUNC maintains this position, it could set the stage for a sustained uptrend.
Risks to Watch: Can the Bulls Maintain Control?
While the current outlook is bullish, there are risks that could derail LUNC’s price surge. If the price fails to hold above the neckline at $0.0001, this could indicate market weakness. In such a case, LUNC may retreat to $0.000008, the recent low, which would invalidate the bullish thesis.
Read more:Will Terra Luna Classic’s Ecosystem Upgrades Push LUNC to $0.0003?
Additionally, any broader market downturn or retracement, particularly from Bitcoin (BTC), could impact LUNC’s ability to sustain its rally.
Conclusion: LUNC’s Path to Recovery Looks Promising
With the Binance burn event and the USTC burn proposal in play, LUNC is poised for potential gains of up to 43% in the short term. If technical indicators hold firm and external factors like the FTX redistribution align in its favor, LUNC could be on the path to recovering its previous glory. Investors should keep a close eye on key support and resistance levels as LUNC eyes $0.00015 as its next major target.
As always, while the outlook is promising, market participants should remain cautious, given the volatility of the crypto space.