Latest Terra Classic (LUNC) Price Analysis

By CMC AI
04 October 2025 04:07PM (UTC+0)

Why is LUNC’s price down today? (04/10/2025)

TLDR

Terra Classic (LUNC) fell 3.46% in the past 24h, underperforming the broader crypto market (-1.28%). Key drivers include weak on-chain activity, exchange delistings, and failed community proposals.

  1. Failed Ecosystem Revival – Low TVL ($800k) and rejected governance proposals signal stagnant utility.

  2. OKX Delisting Impact – Removal of LUNC/USDT pairs on Sept 29 reduced liquidity and trader access.

  3. Bearish Technical Setup – Price struggles below key moving averages, with RSI-neutral momentum.

Deep Dive

1. Ecosystem Stagnation (Bearish Impact)

Overview: Terra Classic’s Total Value Locked (TVL) remains at $800k, reflecting minimal DeFi activity. A recent community proposal (#12192) to introduce an automated yield-bearing stablecoin failed, highlighting governance gridlock.

What this means: Without new utility, LUNC relies on token burns (3.2B burned in Sept 2025) for price support. However, burns alone haven’t offset sell pressure from liquidity pools. Weak developer activity and whale-driven staking (15% of supply) further limit retail participation.

What to look out for: Progress on the v3.5.0 upgrade (targeted for Aug 2025) to reactivate the Market Module, which could improve LUNC-USTC stability.

2. OKX Delisting (Bearish Impact)

Overview: OKX removed LUNC/USDT and LUNC/USDⓈ pairs on Sept 29, citing compliance and liquidity concerns. Deposits/withdrawals will be suspended by Dec 22, 2025.

What this means: Reduced exchange access lowers demand and amplifies volatility. LUNC’s 24h volume fell 6.5% to $9.8M, reflecting thinning liquidity. Historically, delistings trigger short-term sell-offs as holders exit positions.

3. Technical Weakness (Mixed Impact)

Overview: LUNC trades below its 30-day SMA ($0.0000581) and faces resistance at the 23.6% Fibonacci level ($0.00006018). The RSI (49.35) shows neutral momentum, but MACD signals weak bullish divergence.

What this means: Traders are hesitant to push prices higher without a clear catalyst. A break below $0.000052 (June 2025 low) could trigger a retest of $0.000047.

Conclusion

LUNC’s decline reflects fading optimism in its ecosystem revival, compounded by shrinking liquidity and bearish chart patterns. While token burns provide deflationary support, sustained recovery hinges on governance progress and dApp growth.

Key watch: Can LUNC hold $0.000052 support, or will failed proposals deepen the sell-off?

Why is LUNC’s price up today? (03/10/2025)

TLDR

Terra Classic (LUNC) rose 0.9% in the past 24h, underperforming the broader crypto market (+2.38%). However, it’s up 7% over the past week, driven by three key factors:

  1. Accelerated Token Burns – 3.2B LUNC burned in September, reducing supply and supporting deflationary hopes.

  2. Technical Breakout – Price holds above critical moving averages, signaling short-term bullish momentum.

  3. Ecosystem Resilience – Despite exchange delistings and failed proposals, community-driven upgrades persist.

Deep Dive

1. Token Burns & Supply Dynamics (Bullish Impact)

Overview: Over 3.2 billion LUNC tokens were permanently burned in September 2025, part of a multi-year effort that has removed 400B+ tokens since 2022. The circulating supply has dropped from 6.48T to 5.55T, with ~15% staked, reducing sell pressure.

What this means: Burns directly reduce supply, creating scarcity that could lift prices if demand holds. Recent burns align with historical patterns where large burns triggered 10–20% rallies (e.g., February 2025’s 1.6B burn led to a 10% spike). However, weak utility and low Total Value Locked ($800k) limit sustained upside.

What to look out for: Weekly burn rates (1–2B LUNC) and progress on Proposal #12192 (automated stablecoin), which failed but may resurface.

2. Technical Momentum (Mixed Impact)

Overview: LUNC trades at $0.0000577, above its 7-day SMA ($0.00005507) and EMA ($0.00005568). The MACD histogram turned positive (+0.0000000012653), signaling short-term bullish divergence.

What this means: Breaking above moving averages suggests buyers are defending support. However, the RSI14 (50.59) remains neutral, and Fibonacci resistance at $0.00006018 (23.6% level) looms. Failure to breach this could lead to retests of $0.000052 support.

3. Market Sentiment & Risks (Bearish Counterpoints)

Overview: OKX delisted LUNC/USDT pairs on September 29, 2025, citing liquidity concerns. Meanwhile, the broader crypto market’s 2.38% 24h rally provided tailwinds, but LUNC’s 0.9% gain reflects weak relative strength.

What this means: Delistings erode liquidity and investor confidence, while LUNC’s 24h volume ($11M) represents just 3.5% of its market cap—signaling thin trading depth. Without new utility (e.g., dApp growth), rallies remain fragile.

Conclusion

LUNC’s modest 24h gain reflects a tug-of-war between deflationary tokenomics and structural challenges like delistings and low adoption. While burns and technicals hint at upside, weak volume and ecosystem stagnation cap momentum.

Key watch: Can LUNC hold above its 7-day SMA ($0.000055) and attract fresh volume to challenge $0.00006?

CMC AI can make mistakes. Not financial advice.