LUNC price soars as Terra Classic burn rate spikes ahead of Do Kwon sentencing

The LUNC price went parabolic today, Dec. 5, reaching its highest level since Nov. 3, even as the crypto market pulled back. 

Terra Luna Classic (LUNC) token soared to a high of $0.000042, up by 72% from its lowest level this month. This surge happened as traders waited for Do Kwon’s sentencing and as open interest in the futures market rose. 

LUNC’s surge happened in a high-volume environment, with the 24-hour figure rising by 910% to $112 million. Its futures open interest rose to $5.46 million, the highest level since November 28. A rising open interest is a sign of more demand from investors. 

One potential reason for the rally is that traders are waiting for Do Kwon’s sentencing, which will happen on December 11. He pleaded guilty to charges of conspiracy to commit commodities fraud, securities fraud, and wire fraud. 

Legal experts believe that he faces decades in prison because of the magnitude of his crimes, in which people lost over $40 billion. Kwon will join other senior crypto officials like Sam Bankman-Fried and Changpeng Zhao to serve in prison. 

Further supporting the ongoing LUNC price jump is the fact that more tokens are being removed from circulation. Over 849 million tokens have been burned in the last 7 days, bringing the cumulative burns to over 426 billion. Binance remains the biggest burner, having burned over 75 million tokens. It has committed to burn all fees it derives from its trading. 

Terra Luna Classic is the remnant of what was once a top-ten cryptocurrency. Following Terra’s collapse in 2022, the community took over and regularly votes on key proposals. 

LUNC price technical analysis

The daily chart shows that the Terra Luna Classic token bottomed at $0.0000255 this week and then staged a strong comeback to the current $0.00004200. This rebound happened after it formed a small double-bottom pattern. 

The token has now moved above the 50-day moving average, a sign that bulls are gaining control. Top oscillators such as the Relative Strength Index and the Percentage Price Oscillator have all pointed higher.

Therefore, the token will likely continue rising as bulls target the key resistance at $0.000050, its lowest level in February, April, and June this year. Such a move will form a break-and-retest pattern, meaning the coin may resume its downtrend as the hype fades.