Recently, Terra Classic (LUNC) surprised investors with double-digit gains, causing excitement in the market. Alongside this surge, its trading volume also soared, indicating increased activity and interest from traders.
At the same time, the LUNC community is gearing up to submit a proposal that could significantly influence both the blockchain and its token.
Terra Classic (LUNC) Market Analysis
CoinMarketCap’s data indicates that LUNC experienced a notable surge in the last 24 hours, with a price increase of over 10%. Simultaneously, its trading volume soared by more than 700%.
It’s commonly observed that significant price changes are often preceded by spikes in trading volume, indicating heightened market interest. This suggests that the current upward trend in LUNC’s price may persist for a longer duration.
Terra Classic’s one-week price volatility gained momentum following a sharp decline. Moreover, its social volume spiked in the past few days, indicating increased attention and activity surrounding the token.
Source: Santiment
Sentiment Analysis and Derivatives Market
The price uptrend contributed to a rise in bullish sentiment around LUNC, as reflected in its Weighted Sentiment. Additionally, the Funding Rate for LUNC was high, indicating active buying by derivatives investors at higher prices. However, a concerning metric was observed in the form of declining Open Interest despite the price surge.
A decrease in Open Interest typically signals rising possibilities of a trend reversal, posing a cautious note amidst LUNC’s recent price hike.
Source: Santiment
Upon examining LUNC’s 4-hour chart, Terra Classic’s MACD revealed a significant bullish advantage in the market, suggesting a sustained uptrend in price.
However, other metrics presented a bearish outlook, indicating a potential reversal in the trend. Notably, the Relative Strength Index (RSI) experienced a sharp downturn from the overbought zone and was continuing to trend downwards at the time of observation.
Similarly, LUNC’s Chaikin Money Flow (CMF) followed a similar declining trend, signaling a possible conclusion to the token’s bullish rally.
Source: TradingView
Proposal for Terra Classic (LUNC) Security Enhancement
Blockchain security expert Coach Bruce Wrangler recently shared a tweet unveiling a new proposal aimed at addressing key issues within Terra Classic (LUNC).
The proposal highlights the necessity to swiftly burn through LUNC supply to stimulate significant price appreciation. Additionally, it addresses concerns regarding manipulation by anonymous bad actors, such as scammers, plaguing the token.
$LUNC FINAL PLAN V2: Burn All Bad Actors And >50% of Supply in <90 Days
This prop will be submitted for voting onchain within 1 week. This is also my final attempt to solve all ongoing problems with $LUNC in 1 comprehensive plan.
It is an update to the "doxx plan" I put forwardā¦ pic.twitter.com/8SK7IzCW4G
— CBW šš (@OX_DAO) February 3, 2024
Impact of Proposal Implementation
If approved, the proposal could swiftly eliminate 99% of bad actors, bolstering blockchain security. Furthermore, it plans to burn an estimated 50% of the token supply within 90 days, potentially positively impacting the token’s price action in the subsequent months.
As per LUNC Metrics, a total of 97.98 billion LUNCs have been burned to date, reflecting ongoing efforts to enhance tokenomics and security measures.
Important:Ā Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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