The notoriously volatile cryptocurrency market has witnessed another example of its unpredictable nature with Terra Classic (LUNC). After a period of significant decline, LUNC’s price showed signs of improvement.
Although a price increase is often a cause for joy, the LUNC community has been burned many times, and many were wondering if this was another reprieve before a downward spiral or a turning point marking a lasting uptrend. However, LUNC soon lost its footing, leaving investors dejected.
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Dissecting LUNC’s Sudden Surge
Several key developments appear to have caused the recent increase in LUNC’s price. These include an increase in the staking ratio, support, and substantial token burns implemented by the community and exchanges.
The Terra Classic Foundation reported a staking ratio exceeding 15%, indicating over 1.017 trillion LUNC tokens staked – a figure valued at over $70 million. This growth in staking ratio, from 14.83% to 15.01%, reflects growing community confidence and a decrease in readily available supply, potentially influencing token value.
Furthermore, Binance, a leading cryptocurrency exchange, has played a crucial role in LUNC’s revival by burning over 1.7 billion tokens on July 1. This significant burn brought the total number of burned tokens to nearly 62 billion.
When combined with community efforts that have resulted in over 125 billion tokens being burned, this significant reduction in supply could have contributed to an increase in tokens, and many believe they could help it in the long run.
A Look at the Technical Details
A technical analysis of LUNC paints a somewhat bearish picture. The current Exponential Moving Averages (EMA) values suggest a downward trend, with prices remaining below the moving averages across various timeframes.
The MACD indicator also reflects a bearish sentiment, hinting at continued downward momentum. The Relative Strength Index (RSI) offers a glimpse of a potentially negative market outlook, although it doesn’t yet indicate oversold territory.
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Overall, technical indicators lean towards a potentially negative outlook for LUNC, suggesting a prevalence of selling pressure. At press time, TradingView shows a strong sell indicator based on Moving Averages and a neutral indicator based on Oscillators. However, the overall suggestion is a sell, showing bearish sentiment.
LUNC has fallen 5.69% over the past 24 hours to its current price of $0.00001599. Although this is discouraging, recent developments in the ecosystem reinforce the belief that LUNC might stage another resurgence soon, potentially sustaining a prolonged surge.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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