Journalist
Posted:
- LUNC’s social metrics have skyrocketed, indicating rising popularity.
- The burn rate has also increased in recent days.
Like most cryptos, Terra Classic [LUNC] also pushed the accelerator as the price rose by double digits. Meanwhile, an interesting development took place, which had the potential to further depress the price of the token.
So AMBCrypto checked Terra Classic’s on-chain data to find out what to expect.
Terra Classic breaks out
CoinMarketCaps facts revealed that LUNC bulls dominated last week by increasing the token’s price by over 18%. The bullish trend continued over the past 24 hours, with the token’s value rising by more than 6%.
At the time of writing, LUNC was trading at $0.00009981 with a market cap of over $544 million, making it the 130th largest crypto. The positive price action impacted the token’s social metrics.
According to our analysis of Santiment’s data, LUNC’s social volume has increased, reflecting a rise in popularity. However, after a sharp increase, Terra Classic’s weighted sentiment fell.
This decline confirmed that bearish sentiment around the asset is increasing, which could contribute to a price correction.
Source: Santiment
AMBCrypto also found that LUNC’s burn rate has increased dramatically in recent days. Notably, the token’s burn rate soared on November 6.
In general, an increase in the burn rate is an indicator of a deflationary asset. Whenever the burn rate increases, it reduces market supply, potentially positively impacting the asset’s price.
Source: LUNC statistics
What can you expect from LUNC?
We then checked other datasets to better understand what to expect from LUNC as the burn rate increased.
AMBCrypto’s analysis of Santiment’s data showed that LUNC’s Open Interest fell sharply after a big rise on November 10.
This meant that the likelihood of a change in the ongoing price trend was high.
Source: Santiment
However, a few things still remained in the token’s favor. For example, AMBCrypto’s look at Coinglass data showed that Terra Classic’s long/short ratio registered an increase.
So there were more long positions in the market than short positions, which can be inferred as a bullish signal.
Source: Coinglass
AMBCrypto then looked at the daily chart of LUNC. We found that the Relative Strength Index (RSI) rose, indicating greater cash inflows.
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When that happens, it signals the possibility of a continued price increase.
However, the price of Terra Classic exceeded the upper limit of the Bollinger Bands, so the chance of a price correction cannot be ruled out.
Source: TradingView
