- Terra Classic is on track for a rally as part of a potential $270 billion event to come.
- Other on-chain indicators, like Bollinger Bands, show that LUNC recovery is imminent.
The roomTerra Classic (away) recently experienced a bullish breakout from an ascending triangle, which has sparked excitement among community members. LUNC’s bullish momentum precedes a 270 billion token burn event.
Terra Classic LUNC faces key resistance
According to MarketCap data, LUNC climbed more than 5 % in the last 24 hours to reach 0,00009937. It now faces key resistance at the $0.00012519 level, which could determine its next move.
The ascending triangle formed by LUNC indicates increased bullish interest. Each attempt to break through the upper resistance demonstrates the desire of buyers to push prices higher. This structure suggests that LUNC could see significant gains if it breaks through the $0.00012519 resistance level.
However, failure to maintain this structure could result in a sideways move or decline, which would end the recent enthusiasm. Technical indicators provide additional insight into the position of LUNC and its future development. For example, the Bollinger Bands (BB) are tightening, suggesting a decrease in volatility and a possible breakout.
Therefore, the widening bands could support a strong upward move if LUNC breaks above the resistance. Furthermore, the Stochastic RSI indicates an overbought state, with readings as high as 93.61 and 82.58. This indicates possible short-term profit taking by some traders.
However, the uptrend may persist if the price remains above crucial support levels. This scenario gives LUNC a solid foundation for further gains. LUNC's increased trading volume further strengthens its bullish price outlook. LUNC's daily trading volume jumped 222.09% to $34.02 million, indicating increased interest from investors.
Typically, higher trading volume confirms the strength of breakouts. The increase in LUNC volume therefore suggests that market participants are anticipating a recovery from the burn. Thus, the latest increase in volume reinforces the bullish sentiment and suggests that the current breakout may have strong support.
The burning of 275 billion LUNC tokens
CNF reported that The burning of 275 billion LUNC represents a major event for the Terra Luna Classic community following the collapse of the ecosystem in 2022. The token burning event is a directive from the U.S. Securities and Exchange Commission (SEC). United, as Terraform Labs winds down operations.
The agency ordered Terraform Labs to destroy private keys tied to specific blockchain wallets, including USTC, LUNA, Wrapped LUNA, and LUNA 2.0. Terraform Labs, the blockchain behind the Terra ecosystem, has received the green light to implement end of its activities following a recent bankruptcy hearing.
Remember that the SEC accused Terraform Labs and its founder, DO Kwon, for defrauding investors, leading to the collapse of the Terra ecosystem. At the time, investors lost about $40 billion in market value. In light of this collapse, court approval would allow the company to begin liquidating its remaining assets.
With the upcoming liquidation event, a bullish chart pattern, and heavy volume, LUNC appears poised for a potential rally.
