With a remarkable development in recent days Terra Classic It burned more than 100 million LUNC tokens on January 1. This strategic move has a significant impact on the token’s market dynamics, as the latest data shows happened.
Over 100M $LUNC Burned Today. pic.twitter.com/NKq1HpkO1q
NEWS CONTINUES BELOW— LunaClassic HQ 🌕 ™ (@LunaClassicHQ) December 31, 2023
Price Analysis
When the data from LUNCMETRICS is examined, the increase in the burn rate of LUNC is clearly seen. This action effectively reduced the circulating supply of LUNC to approximately 5.85 trillion. This points to a strong deflationary mechanism at play. The immediate result of this burn was a roughly 6% increase in LUNC’s price, as reported by CoinMarketCap. At the time of writing this news, LUNC is trading at $0.0001447. Additionally, its market value exceeded $845 million, making it the 84th largest cryptocurrency positioned as the unit.
An interesting factor to note is the simultaneous rise in LUNC’s Open Interest. For those less familiar with the term, Open Interest refers to the total number of derivative contracts that have not yet been settled, such as futures. An increase in this metric generally indicates that the current price trend is more likely to continue.
Koinfinans.com However, as we reported, there are also worrying factors. Terra Classic has seen a significant reduction in development activities. This could be interpreted as a negative indicator for the long-term health and innovation of the network.
Despite these bullish signals, altcoinA closer examination of ‘s daily chart reveals some bearish indicators. Bollinger Bands, a tool used to measure market volatility, indicate that LUNC has entered a less volatile zone. Additionally, the Relative Strength Index (RSI) for Terra Classic is trending below the neutral mark. This typically signals a potential decline in price.
Moving on to Terra’s stablecoin, USTC, it has also experienced a significant rise, rising over 4% in the last 24 hours. Despite this, overall sentiment around USTC is trending downward, with low social dominance and predominant sentiment.
As a result, while Terra Classic has exhibited impressive deflationary actions resulting in a price increase, various market indicators suggest that investors and enthusiasts should approach it from a balanced perspective, considering both the bullish momentum and the potential challenges ahead.