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Terra Classic (LUNC) Burns Its Way to a Potential Price Rally

Published 07/06/2024, 10:09
Updated 07/06/2024, 10:45
Terra Classic (LUNC) Burns Its Way to a Potential Price Rally
LUNAt/USD
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LUNC/USD
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Coin Edition -

  • LUNC’s steady price rise is linked to strategic token burns, boosting investor confidence and buying interest.
  • Increasing trading volume indicates strong buying interest, supporting LUNC’s bullish short-term price trend.
  • Moderate yet steady burn rate increases support a continued bullish trend, maintaining higher LUNC price levels.

Terra Classic (LUNC) is showing signs of a potential price surge, driven by strategic token burns. Currently trading at $0.0001227, LUNC has gained 3.59% over the past 24 hours. This upward movement began at $0.0001186, peaking at $0.000124 before slightly retracing to its current price. A significant increase in trading volume, up 76.61% to $41.29 million, suggests strong buying interest and the potential for further gains.

In the short term, the price action indicates bullish sentiment. The immediate support level around $0.000120 has been tested multiple times, demonstrating substantial buying interest and demand. The major support level at $0.0001186, the day’s starting price, provides a solid base after successfully withstanding earlier downward pressure.

On the resistance side, the immediate level at $0.000124 was touched before the price slightly retraced, indicating seller presence. Major resistance levels may emerge at the psychological thresholds of $0.000125 and $0.000130.

The upward movement, combined with increased volume, confirms the bullish momentum. The recent peak and pullback form a higher high and higher low pattern, suggest the possibility of further gains.

Analyzing the burn rate chart reveals a key correlation between token burns and price trends. From early February to mid-March saw a low and stable burn rate, resulting in a relatively stable price with minor fluctuations.

The lack of significant supply reduction during this period meant no noticeable price rise. However, from mid-March to early April, a sharp increase in the burn rate indicated a large volume of LUNC was burned, likely causing a price spike due to increased scarcity.

The burn rate continued to rise at a slower pace from early April to late April, supporting a gradual price increase or stabilization at a higher level. Another noticeable increase in the burn rate occurred in early May, likely resulting in an upward push in price as the market reacted bullishly to consecutive significant burns.

Source: luncmetrics

From mid-May to the present, the burn rate shows a moderate yet steady increase. This sustained reduction in supply supports a continued bullish trend or at least maintains higher price levels. Investors view the ongoing burn rate as a positive signal for long-term value retention or growth.

The post Terra Classic (LUNC) Burns Its Way to a Potential Price Rally appeared first on Coin Edition.

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