Terra Luna Classic’s price rose for the second consecutive day as token burn activity accelerated this week.
Terra Luna Classic (LUNC), the remnant of the collapsed Terra network, reached an intraday high of $0.00009217, bringing its market cap to $500 million.
The rally may be driven by the recent U.S. election results, where Donald Trump won by a significant margin, ushering in potential changes for crypto regulation. Indeed, most cryptocurrencies rallied, with Bitcoin (BTC) retesting its all-time high and the total market cap of all coins reaching $2.5 trillion.
Crypto traders expect Trump to appoint crypto-friendly officials to lead the Securities and Exchange Commission, with Hester Peirce, currently an SEC official, being among the proposed names.
LUNC’s price also jumped following a sharp increase in token burns. According to LUNCMetrics, the total burned tokens surged to 388.533 billion, with 137 billion tokens burned this week alone.
This spike followed Terraform Labs’ announcement that it had shut down the Shuttle Bridge as part of its settlement with U.S. regulators amid its Chapter 11 bankruptcy proceedings.
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) November 5, 2024Dear Terra Community,
Following our previous announcement, the Shuttle Bridge interface has now been permanently closed.
As part of this process, all remaining tokens in the Shuttle Bridge wallets have been burned to complete the shutdown.
Thank you for your attention and… https://t.co/bOjAWRDElH
The Shuttle Bridge previously allowed users to send their LUNC and USTC tokens bridged to Ethereum, BNB Chain, and Harmony back to Terra Luna Classic. Remaining tokens were burned, moving them to an irrecoverable address.
Terra Luna Classic has worrying technicals
Despite recent gains, LUNC’s technical indicators are mixed. On the daily chart, a rising wedge pattern—a typically bearish indicator—has formed.
LUNC also trades slightly below its 50-day and 200-day Exponential Moving Averages. The MACD and Relative Strength Index have both shifted to neutral.
Additionally, LUNC has formed a bearish pennant pattern. This setup suggests a potential bearish breakout, which could push the price down to $0.000054, its lowest level on Aug. 5. Conversely, a move above the key resistance level at $0.00010 could signal further gains.