Luna Classic breaks a descending trendline resistance and is holding above it.
LUNC’s stablecoin, USTC, has become a freely traded digital asset whose price is determined entirely by market supply and demand.
Luna Classic investors increase staking as Binance intensifies token burns to reduce supply which could fuel hopes of recovery.
Luna Classic (LUNC) moved past a declining resistance trendline indicating a potential shift in its momentum level. The breakout meant the buying pressure attempted to control the market but retreated at 0.00006157.For bullish confirmation, the price had to remain above the trendline. The low momentum reading at RSI 42.64 indicated LUNC did not reach overbought levels and demonstrated insufficient buying demand.The MACD histogram registered a mild positive movement at 0.00000047 as the MACD line was still lower than the signal line at -0.00000119 and -0.00000072 indicating trend reversal could be in the works but may not be completed yet.The price was repelled at 0.00006700 but failed to hold on above it which suggested that the sellers were still in the market. The price can still rise in price if it keeps maintaining position above the broken trendline for a shot at the 0.00006700 resistance level.LUNA/USDT daily chart | Source: TradingviewThe price has the potential to rise to 0.00007500 after a successful breakout because this level coincides with tops from the past before the downtrend.A lack of support could allow a price retest to be initiated by the 0.00005800 support level which is the next notable point. The price would revert back to 0.00005400 in case of failure of support at this level while demand areas will be intact.RSI being neutral was a sign that price action would be dependent upon bulls’ defense of support. The trend would be supported by a MACD bullish crossover but in case the MACD line was below its signal line, this would sustain momentum as weak.The market arrangement was suggesting continuation of the bulls if 0.00006157 support retained but a move below it will invalidate the breakout and drive the prices to downward levels.
Galaxy Digital and LUNA Case
Galaxy Digital, the top crypto finance services provider, already agreed with the New York Attorney General’s Office for $200 million over its involvement in the case of LUNA investment.The settlement had followed claims Galaxy had been advertising LUNA but failing to report sales and holdings by it on its own basis in violation of New York’s Martin Act.Galaxy, which has made enormous profits before LUNA’s collapse in 2022, neither denied nor accepted the claims but paid off the fine in tranches over three years, with the first one being $40 million within weeks.Source: X
This resolution has put in the limelight growing regulatory scrutiny in the crypto market, which can influence investor sentiment and prompt companies to adopt more transparency mechanisms to avoid such legal battles.
Luna Classic News on USTC, Staking and Token Burns
Meanwhile, LUNC investors had placed higher bets as Binance raised token burning to eradicate supply.Binance had previously incinerated massive LUNC volumes up until March 2025, including a 1.83 billion token, worth $220K, December 2024 burn in a united attempt to keep a recovery rally alive.Increased staking was a sign of investor confidence, which was sustained by the assumption that tighter supply would drive the price of LUNC higher, which remained at $0.19.But staking and burning had also introduced some volatility, with the rapid tightening of supply having the capability to introduce price spikes, which could potentially unsettle owners if market demand could not match tight supply, with a possibility of sell-out.LUNC’s bound token, USTC, had fully reversed with CoinMarketCap redating its records to reflect it now as an unpegged freely tradable digital asset, rather than as a stablecoin.By the vote of validators, USTC lost its system for keeping its peg, with value governed by supply and demand in the market.Binance initially planned to delist stablecoins in Europe through MiCA regulation but switched up around the delisting of USTC, with USDT and FDUSD instead recommended for deletion.Backtracking made the price of USTC less stable, subject to speculative purchase but also susceptibility to owners.
