Terra Luna Classic’s Gradual Rise and Promising Upside Potential

Terra Luna Classic, which is the remnant of the collapsed Terra network, has seen its price rise gradually after hitting bottom in August. This week, it climbed to $0.000129, reaching its highest point since March this year.

Many crypto analysts are optimistic that the token has more room for growth, especially if the ongoing crypto bull run picks up steam. Miles Deutscher, a well-known analyst on X,  stated that he was long on LUNA and LUNC. He mentioned reasons like LUNC’s continued listing on Binance, its strong bullish charts, and its meme appeal.

Another factor that could drive Terra Luna Classic’s growth is the ongoing token burn. According to LUNC Metrics, the network burned 1.34 billion tokens in the last seven days. In total, over 390 billion tokens have been burned so far, leaving a circulating supply of 6.51 trillion. A major burn took place earlier this month when Terraform Labs burned 251 billion tokens as part of a bankruptcy requirement.

The LUNC staking ratio has also increased from its 2022 lows and is now approaching 16%, suggesting that numerous investors are holding the token for the long term.

Looking at the daily chart, Terra Luna Classic has been on a slow bullish trend since bottoming at $0.000054 a few months ago. It has formed a cup and handle pattern, with the upper side at $0.000129. This pattern is typically a sign of continued bullish momentum. Based on the depth of the cup, the coin could potentially rise to $0.0002055, which is approximately 75% above its current level and slightly above the 38.2% Fibonacci Retracement level at $0.00020.

Moreover, LUNC’s movement above the 50-day and 100-day moving averages further supports the bullish outlook. The Relative Strength Index is also climbing, indicating sustained bullish momentum. However, if the price drops below the 100-day moving average at $0.000095, the bullish view would be invalidated.