Similar to many digital assets, Terra Classic [LUNC] experienced a substantial acceleration in its price, with a remarkable double-digit increase. Concurrently, an intriguing development unfolded, signaling a potential uptick in the token’s value.
As a result, the team at CryptoCrypto delved into Terra Classic’s blockchain data to gain insights and anticipate future movements.
Unveiling Terra Classic’s Recent Momentum
Recent statistics from CoinMarketCap unveiled that LUNC encountered a bullish streak over the past week, propelling its price up by an impressive 18% or more. This positive trend persisted within the last 24 hours, witnessing a further 6% surge in the token’s valuation.
At the current moment, LUNC is being traded at $0.00009981, boasting a market capitalization exceeding $544 million, positioning it as the 130th largest cryptocurrency in the market. This favorable price action also had notable effects on the token’s social performance metrics.
Following our analysis of Santiment’s data, it was evident that LUNC’s Social Volume experienced a significant boost, indicating a rise in its appeal. Nonetheless, Terra Classic’s Weighted Sentiment witnessed a decline following the sharp ascendancy.
This slump signifies a growing bearish sentiment surrounding the asset, potentially laying the groundwork for a price correction to ensue.
Furthermore, CryptoCrypto unearthed a remarkable spike in LUNC’s burn rate in the recent days, notably surging on the 6th of November. Traditionally, an escalation in burn rate symbolizes a deflationary attribute within an asset. As the burn rate increases, it curtails the market’s supply, subsequently influencing the asset’s value in a positive trajectory.
Anticipated Trajectory for LUNC
Delving deeper into various data sources, we sought to discern the repercussions of LUNC’s escalating burn rate on its future trajectory.
Our analysis of Santiment’s data revealed a substantial dip in LUNC’s Open Interest subsequent to a notable surge on the 10th of November. This shift indicates a heightened likelihood of a transformation in the prevailing price momentum.
Nevertheless, certain favorable aspects were still inclined towards the token’s favor. For instance, CryptoCrypto’s examination of Coinglass’s data showcased an upsurge in Terra Classic’s long/short ratio. This increase delineates a prevalence of long positions over short positions, construed as a positive market signal.
Subsequently, our team analyzed LUNC’s daily chart, unveiling an upward movement in the Relative Strength Index (RSI), indicative of an inflow of capital.
Such occurrences often hint at a potential sustained price escalation. However, with Terra Classic’s price surpassing the upper boundary of the Bollinger Bands, a potential correction in price cannot be discounted.