- The bullish sentiment surrounding LUNC became dominant over the past 24 hours.
- The price increase could be caused by LUNC’s latest proposal.
Terra Classic [LUNC] recently surprised investors by posting double-digit gains. Trading volume also shot up.
Meanwhile, the LUNC community was ready to submit a proposal, which, if adopted, could have a major impact on both the blockchain and its token.
LUNC pumps
AMBCrypto’s take on CoinMarketCap’s facts revealed that LUNC is up more than 10% in the last 24 hours alone. As the price of the token rose, trading volume also increased by more than 700%.
Significant price changes are often preceded by spikes in volume, signaling increased interest in the market, indicating that the ongoing trend may last longer.
Terra Classic’s one-week price volatility got an upward boost after a sharp decline. The token’s popularity has also risen in recent days as social volume soared.
Furthermore, the price uptrend helped increase bullish sentiment around the token, which was evident from the increase in weighted sentiment.
Source: Santiment
LUNC’s funding rate was also high, meaning derivatives investors were actively buying the token at a higher price. The benchmark in question was Open Interest, which fell despite the price increase.
Whenever Open Interest decreases, it indicates that there are increasing opportunities for a trend reversal.
Source: Santiment
Therefore, to check whether the trend would continue, AMBCrypto looked at the 4-hour chart of LUNC. Terra Classic’s MACD showed a huge bullish edge in the market, indicating continued price appreciation.
However, the rest of the numbers were bearish, suggesting that the trend could end soon.
For example, the Relative Strength Index (RSI) fell sharply from the overbought zone and continued downward at the time of writing.
LUNCThe Chaikin Money Flow (CMF) also followed a similar downtrend, signaling a possible end to the token’s bull rally.
Source: TradingView
LUNC community to submit a new proposal
Recently, Coach Bruce Wrangler, a blockchain security expert, posted a tweet mentioning a new proposal for Terra Classic.
The proposal cited the need to quickly burn through the LUNC supply to achieve a significant price increase.
$LUNC FINAL PLAN V2: Burn all bad actors and >50% of supply in <90 days
This prop will be submitted for a vote on the chain within 1 week. This is also my last attempt to resolve all pending issues $LUNC in 1 total plan.
It’s an update to the “doxx plan” I proposed… pic.twitter.com/8SK7IzCW4G
— 🧩🐂 𝐂𝐨𝐚𝐜𝐡 𝐁𝐫𝐮𝐜𝐞 𝐖𝐫𝐚𝐧𝐠𝐥𝐞𝐫 🚬🕳️ (@OX_DAO) February 3, 2024
Another big problem for that LUNC was that it faced manipulation by anonymous bad actors, such as scammers.
If adopted, the new proposal would quickly remove 99% of bad actors, making the blockchain safe.
Read Terra Classic’s [LUNC] Price forecast 2024-25
It is estimated to burn through 50% of the supply within 90 days, which could positively impact the token’s price action in the coming months.
According to LUNC statisticsSo far, 97.98 billion LUNCs have been burned.