The cryptocurrency Terra Classic (LUNC) has drawn attention with a double-digit price increase. The price surge occurred during a period when the token’s burn rate increased, and the circulating supply decreased.
In the last 24 hours, the price of LUNC increased by more than 25%, reaching the level of $0.00009977, and its market value exceeded $578 million. This increase could be attributed to the high token burn rate. Burnt tokens reduce the circulating supply and make the asset more valuable. According to analyses, more than 700 million LUNC tokens have been burned in the past week.
To date, a total of 78.24 billion LUNC tokens have been burned, reducing the circulating supply to 5.8 trillion. Besides the high burn rate, there are other indicators supporting the price increase of LUNC. Notably, the trading volume has shown an increase of more than 1000% in the last 24 hours. Consequently, LUNC’s price volatility and open positions increased over the week, strengthening the likelihood of the uptrend continuing.
On the other hand, while the price increase was occurring, development activities around the Blockchain decreased. LUNC’s social and market dominance increased by 196% and 28% respectively in the last 24 hours. The improvement in LUNC’s AltRank was also a positive indicator for a bull market.
Looking at Terra Classic’s daily chart, LUNC’s MACD indicator was pointing to an uptrend. The Chaikin Money Flow (CMF) was also moving northward, increasing the chances of the uptrend continuing. However, the Relative Strength Index (RSI) was close to the overbought zone, which could indicate potential selling pressure leading to a price correction.
