The price of Terra Luna Classic (LUNC) is showing signs of weakness this week, despite a strong deflationary move that saw over 365 million tokens burned. While the weekly burn brings the total LUNC supply reduction to more than 411 billion, the token’s price action is hinting at possible downside ahead.
As of now, LUNC is trading around $0.000055, hovering just above its weekly low of $0.000050, according to data from CoinGecko. Investor interest seems to be fading, with daily trading volume dropping to just $9.4 million—a significant decline that highlights weakening demand across the market.
In the futures market, open interest has plunged from over $15 million last month to around $8.46 million, showing that traders are pulling back. On top of that, funding rates have turned negative, which usually means that short-sellers are dominating and expecting further price declines.
To make matters more concerning, exchange inflows for LUNC have increased, signaling that some holders may be preparing to sell. Thursday alone saw around $233,000 worth of LUNC moved to exchanges, which often precedes downward pressure on price.
Technical Outlook: Descending Triangle in Play
From a technical analysis perspective, LUNC has formed a descending triangle pattern—a bearish signal that suggests further downside could be ahead. The horizontal support around $0.00005078 is being tested, while lower highs continue to form, confirming selling pressure.
Since its November peak at $0.0001790, LUNC has tumbled, dropping below both the 50-day and 100-day exponential moving averages, reinforcing the bearish sentiment. If the price breaks below the triangle’s base, we could see a drop toward the year-to-date low of $0.00004695.
What’s Next for LUNC?
Even though Terra Luna Classic remains one of the most actively burned tokens in the market, the current market sentiment and technical indicators are not on its side. The token’s future direction may depend on whether buyers can hold the $0.00005078 support level and revive interest.
Still, LUNC’s ongoing burn strategy could eventually help stabilize supply and boost long-term investor confidence—but for now, caution is advised.
