Terra Classic (LUNC) Bulls Dominate, But Can They Keep the Momentum Going?

Like most cryptos, Terra Classic [LUNC] also pushed the accelerator as its price surged in double digits. Meanwhile, an interesting development happened

While most cryptos, including Terra Classic [LUNC], enjoyed a double-digit price increase last week, an interesting development occurred.

Terra Classic’s price surged last week by more than 18%, as reported by CoinMarketCap. The token continued to trade in the green zone during the last 24 hours, up by over 6%.

LUNC was trading at $0.00009981 at press time, ranking 130th among cryptos with a market capitalization of over $544 million.

The token’s social metrics were impacted by the positive price action. Terra Classic’s Social Volume increased, indicating a rise in its popularity, according to AMBCrypto’s analysis of Santiment data.

However, Terra Classic’s Weighted Sentiment dropped after a sharp rise, indicating increasing bearish sentiment around the asset, which could contribute to a price correction.

LUNC’s burn rate also increased dramatically in the last few days, as AMBCrypto discovered. Notably, the token’s burn rate surged on November 6.

An asset is deflationary when its burn rate increases. A price increase is a potential effect of decreasing the market supply whenever the burn rate rises.

We then checked other datasets to better understand what to expect from LUNC as its burn rate increased.

LUNC’s Open Interest dropped sharply after a major rise on November 10, according to AMBCrypto’s analysis of Santiment data.

This implied that the ongoing price trend was likely to change.

However, the token still had a few things going for it. For instance, Terra Classic’s long/short ratio registered an uptick, according to AMBCrypto’s examination of Coinglass data.

So, there were more long positions in the market than short positions, which can be interpreted as a bullish signal.

Finally, AMBCrypto examined LUNC’s daily chart. We discovered that the Relative Strength Index (RSI) moved upward, indicating more money flowing in.

Whenever that happens, it suggests a possibility of a continued price rise.

However, Terra Classic’s price went above the upper limit of the Bollinger Bands, indicating a potential price correction.