Gibbs Press promo

Assessing the odds of LUNC starting a bull run



  • Terra Classic’s burn rate remained high while its price rallied. 
  • LUNA also followed LUNC’s course as its price surged in the last 24 hours. 

Terra Classic [LUNC] has displayed a laudable performance in the recent past as its price rallied by double digits. This happened at a time when the token’s burn rate increased, reducing its circulating supply.

But is LUNC’s high burn rate the only reason behind the surge, or are there more things to be considered?

Terra Classic is burning 

A look at CoinMarketCap’s data revealed that LUNC’s price rallied by more than 25% in just the last 24 hours. At the time of writing, Terra Classic was trading at $0.00009977 with a market capitalization of over $578 million, making it the 79th largest crypto. 

A possible reason for this rise could be LUNC’s high burn rate.

For the uninitiated, when tokens are burned, their circulating supply decreases, making that asset more valuable. Inasmuch, AMBCrypto’s analysis of Luncmetrics’ showed that more than 700 million LUNC tokens were burned in the last seven days alone.

In total, over 78.24 billion LUNC tokens have been burned thus far, causing its circulating supply to drop to 5.8 trillion.

Luncmetrics

Source: Luncmetrics

Apart from the high burn rate, a few metrics also backed LUNC’s recent price uptrend. Notably, its trading volume surged by more than 1000% in the last 24 hours. As a result, LUNC’s Price Volatility 1w also rose, as did its Open Interest, increasing the chances of a continued uptrend.

However, while its price surged, Development Activity around the blockchain dropped.

Terra Classic LUNC 11.21.26 27 Nov 2023 scaled

Source: Santiment

AMBCrypto’s analysis of LunarCrush’s data also found that LUNC’s Social Dominance and Market Dominance increased by 196% and 28% in the last 24 hours, respectively. Another bullish metric was LUNC’s AltRank, which improved during the same period.

LunarCrush LUNC

Source: LunarCrush

Will the bull rally last?

AMBCrypto then checked Terra Classic’s daily chart to better understand whether the bull run would last. As per our analysis, LUNC’s MACD displayed a bullish crossover. Its Chaikin Money Flow (CMF) also took a northward path, increasing the chances of a continued uptrend.

However, its Relative Strength Index (RSI) was near the overbought zone, a sign of rising sell pressure, which could cause a price correction.

LUNCUSDT 2023 11 27 11 25 33

Source: TradingView


Realistic or not, here’s LUNC’s market cap in BTC’s terms  


It was interesting to note that while LUNC rallied, its sister token, Terra [LUNA], also took a similar route. As per CoinMarketCap, LUNA was up by over 14% in the last 24 hours, allowing it to again reenter the top 100 club in terms of market cap.

At press time, LUNA was trading at $0.7925 with a market cap of over $460 million.





Source link

About The Author

Scroll to Top