LUNC and TAO soar: What’s next for these Crypto assets?

LUNC surges 35%: Burn or just FOMO?

Terra Classic dominated the weekly performances with a +35% rally, breaking through the major resistance at $0.00008, a level that had stopped buyers during the October 2025 crash. This move is part of a series of four consecutive bullish weekly closes, which warrants analysis before jumping to overly bullish conclusions.

The rally is fueled by an acceleration in the burn mechanism: over 247 million LUNC were destroyed in 24 hours, and the May 2026 Binance burn added further pressure on the available supply. Fundamentally, 444 billion LUNC have been burned since the mechanism launched, representing 6.43% of the total supply, and an additional 932 billion are locked in staking, reducing the available float on the markets.

The issue remains the technical reading. The 14 day RSI sits at 82.79, signaling an extreme overbought zone, and the open interest on futures has jumped to $37.85 million, a sign of high speculative activity rather than structural accumulation. For crypto trading enthusiasts, this type of setup calls for caution: FOMO driven rallies often reverse just as quickly as they rise. The $0.00008 zone, a former resistance, will be the true test in the coming days. A consolidation above this level would confirm the reversal; a rejection would put LUNC back into its long term bearish structure.

TAO consolidates: Decentralized AI seeks its next catalyst

Bittensor took the third spot among the weekly top gainers with +13.5%, bringing its two week progression to over +20%. TAO is currently trading around $286, with a daily volume of $250 million and a market cap of $3.11 billion.

The main recent catalyst is the filing of spot TAO ETF applications by Grayscale and Bitwise on April 28, 2026, which triggered a 50% surge in 24 hour volumes, signaling an influx of institutional capital. This type of pre approval narrative is a powerful driver, but it runs out of steam quickly if the SEC fails to provide a positive signal.

A direct breakout above $300 in a single move seems unlikely in the short term. The $250 support has not been seriously tested after three weeks of bearish pressure, meaning the structure still needs to prove its strength before considering a new breakout. For those looking to understand AI related cryptocurrencies, TAO represents a fundamentally solid project with a unique incentivization model for machine learning models, but its price remains highly sensitive to macro narratives.

WLFI under pressure, undisclosed private sale and broken trust

World Liberty Financial is among the biggest losers of the week with a -25% correction. The cause is not macro: it is structural and tied to the governance of the project.

After raising $550 million across two public rounds, WLFI quietly sold an additional 5.9 billion tokens to private investors without proper disclosure. The proceeds from this sale reportedly largely benefited entities linked to the Trump and Witkoff families, who receive 75% of the sales revenue according to the project structure.

Since mid January, WLFI has been printing lower lows. After two weeks of consolidation around $0.07, the support gave way, forming a new lower low. If this structure does not improve, the next bearish target lies below $0.02.

The token is technically very weak, trading 51% below its 90 day price, with an RSI close to 30 indicating an oversold zone. Our reading: a technical bounce is possible from these extreme levels, but institutional investor confidence is severely damaged. Only a return above $0.07 would change the game. Before considering any exposure, check out our guide on crypto investment risks.

DEXE: Healthy correction or start of a reversal?

DeXe closes the week as the third biggest loser with a -23.5% correction, following ten consecutive weeks of weekly gains. This drop follows an -8.5% pullback the previous week, bringing DEXE back to mid April levels around $10. Despite the correction, the overall structure remains upward trending and the weekly RSI stays in a support zone.

The $10 zone represents a critical psychological level. A bounce at this point would naturally attract buyers looking for an entry point after the flush. On the other hand, a clean break below this support would invalidate the bullish structure built over several months and open a path toward much lower levels.

Our view on DEXE differs from that on WLFI: the underlying structure remains constructive and the correction seems more related to profit taking after ten weeks of upside than to a fundamental deterioration. It is a token to watch for crypto price predictions in the coming weeks, with a possible bounce if the broader market remains risk on. For exposure through the right channels, our comparison of the best exchanges is available.

Sources:

• TradingView
• CryptoMichNL on X
• AMBcrypto

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