Similar to many digital assets, the price of Terra Classic’s cryptocurrency LUNC experienced a significant surge, reaching double-digit growth. During this period, an intriguing development unfolded that had the potential to further boost the token’s market value.
Consequently, in order to anticipate future market behavior, CryptoCrypto conducted an in-depth analysis of Terra Classic’s on-chain data.
Noteworthy Surge in Terra Classic’s Performance
Recent data from CoinMarketCap uncovered that LUNC bulls dominated the market last week, driving the token’s value up by more than 18%. This bullish momentum persisted over the past 24 hours, resulting in a further 6% increase in the token’s price.
As of the latest update, LUNC was being traded at $0.00009981, with a market capitalization exceeding $544 million, solidifying its position as the 130th largest cryptocurrency in the market. The positive price movement also influenced the token’s social metrics.
The analysis of Santiment’s data indicated a rise in LUNC’s Social Volume, indicating an increase in its popularity. However, there was a subsequent decline in Terra Classic’s Weighted Sentiment after a sharp rise.
This drop suggested a growing bearish sentiment surrounding the asset, which could potentially lead to a price correction in the near future.
Further investigations by CryptoCrypto unveiled a substantial increase in LUNC’s burn rate in recent days, notably spiking on the 6th of November.
An escalation in burn rate typically signifies a deflationary nature of the asset. This rise results in a reduction in market supply, which can positively impact the asset’s price.
Future Prospects for LUNC Coin
Subsequently, additional datasets were analyzed to gain insights into the future trajectory of LUNC following the surge in its burn rate.
According to Santiment’s data analyzed by CryptoCrypto, LUNC’s Open Interest exhibited a sharp decline after a significant increase on the 10th of November.
This fluctuation indicated a high likelihood of a shift in the prevailing price trend.
Nevertheless, some factors continued to favor the token. For example, a review of Coinglass data by CryptoCrypto highlighted an uptick in Terra Classic’s long/short ratio.
This observation indicated a greater prevalence of long positions over short positions in the market, signaling a bullish sentiment.
Furthermore, an examination of LUNC’s daily chart uncovered an upward movement in the Relative Strength Index (RSI), indicating increased capital inflows.
Such movements usually hint at a possible continuation of the price uptrend. However, with Terra Classic’s price surpassing the upper Bollinger Bands limit, the likelihood of a price correction cannot be discounted.