LUNC has soared past $0.0001 to a 15-month high, fuelled by Binance's 923 million-token burn and rising on-chain demand. Credit: CCN
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Key Takeaways
LUNC has rallied by more than 100% to a 15-month high since breaking above the $0.000046 resistance on April 23.
Binance has destroyed over 3 billion LUNC this month.
Despite bullish on-chain signals, an overbought RSI of 77.92 and persistently negative funding rates flag a near-term pullback risk.
LUNC’s price has staged its most convincing rally in over a year.
The altcoin’s value has soared by more than 100% since breaking above the $0.000046 resistance, which had repeatedly capped its price growth since last December.
The breakout occurred on April 23, when the altcoin closed above this price ceiling, confirming a pickup in buy-side pressure.
The altcoin is now trading near its January 2025 highs, with the rally driven by two catalysts: an aggressive uptick in LUNC burns, and renewed market attention around the May anniversary of the Terra-Luna collapse.
Binance Burns 923 Million Terra Luna Classic Tokens
LUNC’s rally since April 23 has been primarily tied to its burn mechanics.
On May 1, leading exchange Binance executed its monthly buyback-and-burn, permanently removing 923 million LUNC from circulation — the largest single-day LUNC burn in months.
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Binance’s April spot and margin trading fees funded the burn, then executed on-chain and sent to the official burn wallet.
The exchange’s cumulative contribution to the LUNC burn program has now exceeded 80 billion tokens.
This burn operates alongside the network’s 0.5% on-chain burn tax, which automatically removes a portion of every LUNC transaction by sending it to a burn wallet.
So far this month, over 3 billion LUNC have been burned, bringing the cumulative total to 446.34 billion LUNC.
The approaching anniversary of the May 2022 Terra ecosystem collapse, which wiped out over $40 billion in market value, has also partly driven LUNC’s rally.
LUNC On-Chain Data Confirm Bullish Skew
On-chain, LUNC appears poised to keep climbing. As its price has risen over the past two weeks, its social dominance has also increased, reaching a 30-day high of 0.095 on May 4.
An asset’s social dominance tracks how often it is mentioned across social platforms, forums, and news outlets relative to the rest of the market.
When it expands, it signals that the token is capturing retail interest, and historically, rising social dominance has preceded extended price moves in altcoins.
Furthermore, LUNC’s daily spot trading volume is rising in tandem with price.
According to Glassnode, spot volume across all exchanges has climbed by over 100% in the past week.
This is generally read as a bullish signal, as it means fresh capital is flowing into LUNC positions.
However, the token’s funding rate tells a more cautious story.
According to Coinglass data, LUNC’s funding rate has remained mostly negative since April 25, with several deep red prints even as its price has continued higher.
An asset’s funding rate is the periodic payment exchanged between its long and short futures contract holders based on the difference between an asset’s spot price and futures price.
When the rate is positive, it means that long position holders are paying short, indicating a strong bullish bias.
On the other hand, a negative funding rate means short positions are paying longs to keep their trades open.
This indicates that LUNC derivatives traders are positioning against the rally rather than chasing it.
The combination of rising prices, rising open interest, and persistently negative funding sets up a short-squeeze scenario.
If the altcoin price keeps grinding higher, these shorts may be forced to cover, further fuelling the rally.
LUNC Price Prediction: $0.000117 Upside or $0.000054 Pullback?
On the technical side, readings from LUNC’s Relative Strength Index (RSI) also highlight the need for caution.
As of this writing, this momentum indicator, which measures whether an asset is oversold or overbought, is at 77.92.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Abiodun Oladokun is a Research Analyst at CCN, where he covers cryptocurrency markets with a focus on on-chain analysis, technical assessments, and emerging trends across decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins.
Prior to CCN, he served as a Senior On-Chain Analyst at BeInCrypto, producing market reports spanning diverse crypto sectors.
Before that, he conducted technical analysis and market assessments of various altcoins at AMBCrypto, where he also contributed long-form quarterly research papers on DeFi, NFTs, DAOs, and scaling architectures, leveraging on-chain platforms including Messari, Santiment, DefiLlama, and Dune Analytics.
He began his crypto career as a research analyst at SixthSense DAO, developing blockchain forensic tools to trace the history of stolen assets.
Abiodun is a lawyer called to the Nigerian Bar and the founder of Ilé Ijó, a Lagos-based electronic dance music collective.
