The cryptocurrency market is experiencing a substantial surge, and Terra Classic (LUNC) is thriving amid this trend. In just one month, it has witnessed a remarkable 117% increase. This development is noteworthy considering Terra Classic faced challenges previously, reaching its lowest value in early August. However, its current performance surpasses expectations, with a noteworthy rise in price and indications of robust growth, leaving market observers pleasantly surprised. Now, the question is how high will LUNC price go. To delve deeper into the reasons behind the ascending LUNC price, let’s delve into a Terra Classic price analysis.
Terra Classic Price: Why is LUNC Price Up?
On December 1, the cryptocurrency exchange Binance executed a transaction, sending 3.90 billion Terra Luna Classic (LUNC) tokens to the burn address. This action aligns with Binance’s ongoing commitment to the community’s LUNC burn campaign, aimed at diminishing the circulating supply of LUNC following the departure of Changpeng “CZ” Zhao as Binance CEO.
It’s noteworthy that this transaction marks the 16th batch of the LUNC burn mechanism, covering the period from October 31 to November 29. With this recent burn, Binance has successfully eliminated over 43 billion Terra Classic tokens, derived from trading fees on LUNC spot and margin trading pairs. Additionally, the community itself has contributed significantly to the burn, torching nearly 83 billion LUNC tokens.
Token burning can have a significant impact on the price of a cryptocurrency, and the case of Terra Luna Classic (LUNC) as mentioned above illustrates this dynamic. When tokens are burned, it means that they are permanently removed from circulation, reducing the overall supply of the cryptocurrency. This reduction in supply, if the demand remains constant or increases, can potentially lead to an increase in the token’s price.
Token burning is often viewed positively by the market. It signals to investors and the community that the project is actively managing its tokenomics and is committed to maintaining or increasing the value of the cryptocurrency.
How has the LUNC Price moved in recent days?
As of now, the Terra Classic price stands at $ 0.000142, accompanied by a 24-hour trading volume of $ 265.18M. The market cap is reported at $ 825.39M, and the token holds a market dominance of 0.06%. Over the last 24 hours, the LUNC price has shown a notable increase of 20.42%.
Terra Classic achieved its highest price on Apr 5, 2022, reaching an all-time high of $ 119.01. Conversely, its lowest price occurred on May 13, 2022, when it dipped to its all-time low of $ 0.00001651. The post-all-time high (ATH) lowest price was recorded at $ 0.00001651 (cycle low), while the highest LUNC price since the last cycle low reached $ 0.000590 (cycle high). The current sentiment for Terra Classic price prediction is neutral, and the Fear & Greed Index indicates a level of 74, signifying greed.
In terms of supply metrics, Terra Classic’s circulating supply presently stands at 5.80T LUNC out of a maximum supply of 6.88T LUNC. Notably, the current yearly supply inflation rate is -3.22%, indicating that -193.06B LUNC was created in the last year.
How High Will LUNC Price Go?
Considering the recent positive momentum in the Terra Classic (LUNC) market, with 16 out of the last 30 days being green (53%), the token has demonstrated resilience and potential for upward movement.
The high liquidity, as evidenced by its substantial market cap of $ 825.39M, suggests a robust market presence. Moreover, the yearly inflation rate is notably negative at -3.22%, implying a reduction in the token supply, which can contribute to potential price appreciation.
However, it’s crucial to acknowledge certain risk factors. Over the past year, the LUNC price has experienced a decline of -22%, indicating a level of vulnerability. In this period, it has been outperformed by 87% of the top 100 crypto assets, including notable cryptocurrencies like Bitcoin and Ethereum.
Trading below the 200-day simple moving average in a year and being overbought may pose additional challenges, suggesting a possible correction shortly. Furthermore, being down -100% from its all-time high indicates a substantial loss in value, which could influence investor sentiment.
Should the bullish momentum persist and drive the price beyond the resistance threshold of $0.000144, the LUNC price is poised to recover strength and position itself for an imminent challenge of the upper resistance level at $0.000154.
Moreover, should the bulls successfully maintain the price at this juncture, it will establish a foundation for Terra Classic to potentially venture towards testing the higher price of $0.000161 in the upcoming week.
On the contrary, if the bears exert dominance over the bulls, causing a shift in momentum, the price is likely to retreat and examine its support level at $0.00012851 in the near term. Furthermore, in a scenario where bearish forces persist, triggering a market downturn, the price may descend further, undergoing testing at its lower support level of $0.00011774.
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