The price of Terra Classic (LUNC) has surged this week, sparking significant interest in the broader cryptocurrency community.
LUNC is up 12% in the last 24 hours and is trading at around $0.0000750 in active hours. LUNC shares have risen more than 60% in the past week, reflecting a new buying trend.
The coin also showed strong monthly growth, with gains of almost 100% and better performance in the market.
The broader market also saw gains, with a 1.31% increase to bring the market cap to $2.55 trillion. The broader gain was part of a macroeconomic-driven “relief” trend following news of… Ceasefire between the United States and Iran.
Bitcoin price remained above $76,000, showing stability after recent volatility. Ethereum was trading at around $2,260 and The price of XRP is trading Priced at $1.37.
Here’s why the price of Terra LUNC has skyrocketed recently
Recent increases in token burning across the Terra Classic ecosystem have given further momentum to the cryptocurrency. Just under 630 million LUNC tokens were burned in the past three days, reducing the available supply.
This ongoing supply crunch is driving demand and price growth. Another focus was on Binance’s monthly burn on May 1st.
The burn volume is expected to be larger given the increased trading activity in April. The company continues to burn tokens using proceeds from spot trading fees and margin.
The volume of derivatives trading on major stock exchanges also increased to support the rise. CoinGlass data shows that LUNC’s open interest increased to $37.85 million during the rally. This reflects renewed interest in speculation and positions by short-term traders.
LUNC is gaining momentum with network upgrade and SEC Outlook settlement format
The community is also looking to propose a network upgrade to Terra Classic v4.0.1 which is currently under vote. This is until May 6 and will improve network performance and address previous network issues. Sentiment has also been affected by other legal moves made by Terraform Labs.
The company has reached a settlement with the US Securities and Exchange Commission and is moving forward with bankruptcy proceedings. This may help accelerate the shift to a community-led governance structure.
Network development continues to provide additional support to price action.
Looking to the future, there are possibilities for the return of the Galaxy Station and possible exchange listings in the future.
How expensive can the Terra Classic be?
At the time of writing this report, it was LUNC price increased At $0.0000746, it is still rising after a strong rally over the past few days.
The Relative Strength Index (RSI) is still near 70 which is a strong level but approaching overbought levels. Chaikin’s fund flow is also positive, meaning there is significant money flowing into the token.
The next resistance is likely to be at $0.000080 and the upper trend line. If Terra Classic price continues to rise, it will reach the next resistance level at $0.0000900. Further rise could take the price to the psychological level of $0.00010. Support is located at the lower trend line of the channel at $0.000070. If it fails, you could fall back towards $0.000060.
