Journalist
Posted:
- Terra Classic’s burn rate remained high while its price rose.
- LUNA also followed LUNC’s price as its price soared over the past 24 hours.
Terra Classic [LUNC] has delivered commendable performance in the recent past as its price rose by double digits. This happened at a time when the token’s burn rate was increasing, reducing its circulating supply.
But is LUNC’s high burn rate the only reason behind the surge, or are there other things to consider?
Terra Classic is lit
A look at CoinMarketCap facts revealed that LUNC’s price has risen by more than 25% in the past 24 hours. At the time of writing, Terra Classic was trading at $0.00009977 with a market cap of over $578 million, making it the 79th largest crypto.
A possible reason for this increase could be LUNC’s high burn rate.
BREAKING NEWS
78.5 billion $LUNC Burnt
pic.twitter.com/iVNZJKZ8xw
— LunaClassic HQ
™ (@LunaClassicHQ) November 26, 2023
For the uninitiated, when tokens are burned, their circulating supply decreases, making that asset more valuable. To that extent, AMBCrypto’s analysis is like Luncmetrics’ analysis showed that more than 700 million LUNC tokens have been burned in the last seven days alone.
In total, more than 78.24 billion LUNC tokens have been burned to date, reducing the circulating supply to 5.8 trillion.
Source: Luncmetrics
Apart from the high burn rate, some numbers also supported LUNC’s recent price increase. It is striking that trading volume has increased by more than 1000% in the last 24 hours. As a result, LUNC1w price volatility also rose, as did open interest, increasing the chances of a sustained uptrend.
However, while its price rose, development activity around the blockchain fell.
Source: Santiment
AMBCrypto’s analysis of LunarCrush data also found that LUNC’s social dominance and market dominance increased by 196% and 28% respectively over the past 24 hours. Another bullish metric was LUNC’s AltRank, which improved over the same period.
Source: LunarCrush
Will the bull rally last?
AMBCrypto then checked Terra Classic’s daily chart to better understand whether the bull run would continue. According to our analysis, LUNC‘s MACD showed a bullish crossover. The Chaikin Money Flow (CMF) also followed a northerly direction, increasing the likelihood of a sustained uptrend.
However, the Relative Strength Index (RSI) was near the overbought zone, a sign of increasing selling pressure, which could trigger a price correction.
Source: TradingView
Realistic or not, here it is The market capitalization of LUNC in terms of BTC
It was interesting to note that as LUNC rallied, its sister token, Terra [LUNA], has also followed a similar route. From CoinMarketCapLUNA is up over 14% in the last 24 hours, moving back into the club’s top 100 in terms of market capitalization.
At the time of writing, LUNA was trading at $0.7925 with a market cap of over $460 million.
