LUNC’s price has seen a significant decline in the past month. Despite this, its 24-hour chart showed positive gains, and various metrics were indicating a bullish outlook.
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Terra Classic [LUNC] experienced a decrease in its staking ratio in the past 24 hours after it was previously increasing. A drop in this metric usually suggests that stakers have become less confident in the asset. It raises the question of whether the declining price action of LUNC in recent weeks has contributed to the decrease in stakers’ confidence.
Terra Classic stakers losing confidence?
Staking is a process where users lock up their assets to earn rewards. On the LUNA Classic blockchain, it takes 21 days to unstake LUNC, meaning stakers must wait to withdraw their holdings.
Recently, there was a decline in the percentage of LUNC staked, indicating that users were unstaking their holdings. This suggests that their confidence in the token was low. At present, LUNC has a staking ratio of 14.92%, which is concerning as the ratio had been increasing for several weeks before the recent downtrend.
Source: LUNC METRICS
One possible reason for the drop in staking could be LUNC’s declining price trend over the last month. The token’s value has decreased significantly, which might have led stakers to unstake their assets.
However, despite the price decline, on-chain metrics show that investors’ confidence has not dropped. The token’s weighted sentiment recently increased, indicating positive sentiment among users. Additionally, Terra Classic’s social volume remained high, showing that it is still popular in the crypto community.
Source: Santiment
The good news is that, along with its price, the open interest of the token also declined. A drop in open interest suggests a possible trend reversal, and this turned out to be true for Terra Classic. In the last 24 hours, the token’s price gained bullish momentum.
According to CoinMarketCap, LUNC was up by 1.2% in the last 24 hours and was trading at $0.00007866 with a market capitalization of over $457 million. The 4-week price volatility also increased, indicating the possibility of a continued uptrend. If the price continues to rise, stakers might be encouraged to continue staking LUNC to earn profits.
Source: Santiment
In The Future
Some market indicators were favorable for buyers. The Relative Strength Index (RSI) showed an increase and was approaching the neutral level.
Terra Classic’s Chaikin Money Flow (CMF) also moved up, following the RSI. However, the Exponential Moving Average (EMA) Ribbon remained bearish, with the 20-day EMA below the 55-day EMA.
Source: TradingView
Important: 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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