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- The Terra Classic’s burn rate has remained high while its price has increased.
- LUNA also followed LUNC’s footsteps, with its price rising sharply over the past 24 hours.
Terra Classic (LUNC) It has shown commendable performance recently, with prices rising by double digits. This occurred at a time when the burn rate of tokens was increasing, reducing circulating supply.
But is LUNC’s high burn rate the only reason for the surge, or is there more to consider?
Terra Classic is on fire
Explore CoinMarketCap data The price of LUNC has risen by more than 25% in the last 24 hours. At the time of this writing, Terra Classic was the 79th largest cryptocurrency, trading at $0.00009977, with a market capitalization of over $578 million.
A possible reason for this rise could be the high burning rate of LUNC.
Breaking news ๐ฅ๐ฅ๐ฅ
78.5 billion $ away It burned down ๐ฅ๐ฅ๐ฅ๐ฅ๐ฅ pic.twitter.com/iVNZJKZ8xw
โ LunaClassic HQ ๐โข (@LunaClassicHQ) November 26, 2023
For the uninitiated, when a token is burned, its circulating supply decreases, making the asset more valuable. AMBCrypto’s Luncmetrics analysis showed Over 700 million LUNC tokens were burned in the last 7 days alone.
A total of over 78.24 billion LUNC tokens have been burned so far, reducing the circulating supply to 5.8 trillion.
Source: Lucmetrics
In addition to the high burn rate, several indicators also supported LUNC’s recent price upward trend. In particular, trading volume surged by more than 1000% in the last 24 hours. As a result, awayAs with open interest, price volatility of 1w has also increased, increasing the likelihood of a continued upward trend.
However, while prices have soared, development activity around blockchain has declined.
Source: Santiment
AMBCrypto’s analysis of LunarCrush data shows that LUNC’s social and market power have increased by 196% and 28%, respectively, over the past 24 hours. Another bullish indicator 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 market would continue. According to our analysis, awayThe MACD showed a bullish crossover. Chaikin Money Flow (CMF) also moved northward, increasing the likelihood of a continued uptrend.
However, the Relative Strength Index (RSI) is close to the overbought zone, which is a sign of increasing selling pressure and could result in a price correction.
Source: TradingView
Realistic or not, the following is Market capitalization of LUNC based on BTC
While LUNC is rebounding, its sister token LUNC Earth (MOON), I also chose a similar path. Depending on the CoinMarketCapLUNA is up more than 14% in the last 24 hours, re-entering the top 100 club by market capitalization.
At press time, LUNA was trading at $0.7925, with a market capitalization of over $460 million.