LUNC Price Eyes 60% Rally As Terra Classic Forms Bullish Pattern

LUNC price recovery accelerated this week as it jumped to its March highs. A forming technical chart points to a potential 60% jump, a view that is supported by the ongoing Terra Classic token burn.

LUNC Price Is Forming Bullish Patterns

Terra Classic price was trading at $0.0001620 on Friday, a 193% surge from its lowest point this year. There are odds that the coin will continue rising in the next few weeks as it is forming several bullish patterns.

LUNC formed a golden cross pattern on November 18 as the 200-day and 50-day Exponential Moving Averages (EMA) flipped each other. Historically, this cross has been one of the most bullish patterns in technical analysis. 

For example, Terra Classic formed this cross in October last year when it was trading at $0.00013. It then jumped to the year-to-date high at $0.0002795, a 125% surge.

Most importantly, there are early signs that Terra is slowly forming a cup and handle (C&H) pattern whose higher side is at $0.0002795. A C&H often takes months or even years to form and is one of the most popular bullish signs. It has a horizontal line and a rounded bottom. 

Therefore, in this case, it means that the coin may jump by about 60% to get to the year-to-date high of $0.0002795. For that to happen, it will need to cross the important resistance point at $0.0002546, its highest level in March this year.

LUNA is also slowly forming what seems like a bullish flag or a pennant. These continuation patterns have a vertical line and some consolidation. In this case, more upside will be confirmed if it rises above this week’s high of $0.0001794.

Terra Classic (LUNC) Boosted By Token Burns

A key fundamental catalyst for the LUNC price is the ongoing token burn. A burn happens when cryptocurrencies are removed from circulation by being sent in an inaccessible address. 

In Terra’s case, over 393 billion tokens representing 84% of the total have been burned since its inception. 2.36 billions of these tokens were burned in the past seven days. This trend may continue for a long time. 

Terra Classic price may also jump because of an upcoming upgrade to its network. The new upgrade will mainly focus on simplifying the tax handling for the network. Most importantly, it will also let developers on Cosmos build on the Terra Classic network.