Terra Luna Classic (LUNC) Price Reacts to Shuttle Bridge Closure, But Is At Risk of More Losses

The Terra Classic price crawled back on Tuesday, November 5, reaching an intraday high of $0.000086. This LUNC recovery happened after Terra

Terra Classic (LUNC) price showed signs of recovery on Tuesday, November 5, as it crawled back from recent losses. This LUNC price recovery happened after the Terra blockchain announced the permanent closure of the Shuttle Bridge and the burning of the remaining tokens.

Terra Classic Price Reacts To Shuttle Bridge Closure

In an X post on Tuesday, Terra announced the permanent closure of the Shuttle Bridge interface. This closure led to the burning of the remaining LUNC and USTC tokens in the bridge. A token burn is a process where tokens are moved to a discrete address that cannot be accessed.

This closure came a few months after the developers opened the bridge to allow for the redemption of the existing wrapped tokens. Specifically, the bridge allowed users to send their LUNC and USTC bridged to Ethereum, BNB Chain, and Harmony back to Terra Classic.

The opening of the Shuttle Bridge was part of the Terraform Chapter 11 bankruptcy proceedings, following the collapse of the blockchain earlier this year. As part of the settlement with the Securities and Exchange Commission, Terraform Labs was required to burn the remaining tokens.

Terra Luna Classic Price In Danger Zone

Earlier this year, LUNC price formed a double-top pattern around the $0.00025 price level, which shows a drop of 65% from its highest level in March. The neckline of this pattern was at the $0.000087 price level, where it was trading on November 5.

Crucially, LUNC price has remained below the 78.6% Fibonacci Retracement level, the 50-day Weighted Moving Average indicator, and the Ichimoku cloud.

The LUNC token has formed two bearish chart patterns. It has created a rising wedge, which is characterized by converging higher lows and higher highs. Typically, this pattern resolves in a breakdown, especially as the two lines near their confluence.

Finally, Terra Luna Classic has formed a bearish pennant chart pattern, which is characterized by a long vertical line and a triangle-like pattern.

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