Terra Classic (LUNC) has accelerated its growth by showcasing deflationary characteristics at the start of 2024. This not only proves the token’s commitment to rebuilding its network but also positively influences LUNC’s price movement. A popular Twitter user from the LunaClassic HQ, who publishes updates on the Terra Classic ecosystem, reported that the blockchain burned 100 million LUNC tokens on January 1, 2024. Data from LUNCMETRICS confirmed a significant increase in the burn rate during this period, which led to a reduction in the circulating supply to 5.85 trillion tokens.
Entering 2024, LUNC’s price movement also showed a similar upward trend. According to CoinMarketCap, the token experienced an approximate 6% increase over the last 24 hours. At the time of writing, LUNC was trading at $0.0001447 with a market capitalization of over $845 million, ranking it as the 84th largest cryptocurrency. As the altcoin’s price rose, so did the open interest, which could indicate a higher probability of the current price trend continuing.
However, development activity around the blockchain has significantly decreased, which could be a negative signal for the cryptocurrency. Despite bullish metrics, a look at the daily chart could point to several bearish indicators. For instance, Bollinger Bands revealed that LUNC’s price entered a less volatile region.
Additionally, Terra Classic’s Relative Strength Index (RSI) is below the neutral level, increasing the possibility of a price decline. The Terra ecosystem’s stablecoin USTC also recorded price increases. CoinMarketCap data showed that USTC rose by more than 4% in the last 24 hours. At the time of the report, its value was around $0.03372 with a market capitalization of over $302 million.