Terra Shuts the Shuttle Bridge: What’s On The Horizon for Terra Classic Price?
On Tuesday, November 5, Terra Classic displayed a modest recovery, peaking intraday at $0.000086. This uptick followed Terra’s announcement regarding the permanent closure of the Shuttle Bridge, which coincided with the incineration of leftover LUNC and USTC tokens.
Terra Classic Price Dynamics Post-Shuttle Bridge Closure
In a recent post on X, Terra confirmed the definitive shutdown of the Shuttle Bridge interface, which led to the burning of the remaining LUNC and USTC tokens associated with the bridge. Token burns occur when tokens are sent to an address that is not accessible, effectively removing them from circulation.
This closure transpired a few months after the developers had reopened the bridge to facilitate the redemption of existing wrapped tokens. The Shuttle Bridge previously allowed users to transfer their LUNC and USTC bridged tokens back to Terra Classic from Ethereum, BNB Chain, and Harmony.
The launch of the Shuttle Bridge was part of Terraform’s Chapter 11 bankruptcy proceedings, following the project’s collapse. As part of the settlement agreement with the Securities and Exchange Commission, Terraform Labs was mandated to burn the remaining tokens to ensure compliance and restore some asset integrity.
Technical Outlook for Terra Luna Classic
The LUNC price had established a double-top formation around $0.00025 earlier this year, which contributes to its decline of approximately 65% from its peak in March. The neckline for this double-top pattern is situated at $0.000087, the trading level observed on November 5.
Currently, LUNC is struggling below the 78.6% Fibonacci Retracement level. It remains constrained under both the 50-day Weighted Moving Average and the Ichimoku cloud, indicating bearish momentum.
Technical Analysis
From a technical analysis perspective, LUNC has developed two bearish chart patterns: a rising wedge characterized by converging higher lows and higher highs, and a bearish pennant formed by a sharp downward move followed by a triangular consolidation. Historically, such configurations often lead to a breakdown, especially as the converging lines approach.
Given the interplay of the double-top formation, rising wedge, and the bearish pennant, there is a high probability of a bearish breakdown in the near term. Should this scenario unfold, the next critical support level to monitor will be $0.000054, aligning with the August lows, which represents a drop of 38% from the current level.
Price Action
Conversely, if LUNC manages to break through significant resistance at $0.00011, corresponding to its highest swing in September, it would invalidate the bearish outlook. In such a case, the token could rally toward the next key resistance at $0.00013, marking its peak from May.
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