This week the Terra Classic (LUNC) price spiked, generating considerable attention in the wider cryptocurrency community.
The LUNC as climbed 12% in the last 24 hours and is trading around $0.0000750 in active hours. LUNC has gained over 60% in the past week, reflecting a new buying trend.
The coin has also shown strong monthly growth, with a gain of nearly 100% and top market performance.
The broader market also saw gains, with a 1.31% increase to a market capitalisation of $2.55 trillion. The wider gain was part of a macro-driven “relief” trend on news of a U.S.-Iran ceasefire.
Bitcoin price remained above $76,000, showing stability following recent fluctuations. Ethereum was trading around $2,260 and XRP price traded at $1.37.
Here’s Why Terra LUNC Price Has Been Surging Recently
Recent surges in token burns across the Terra Classic ecosystem have given the cryptocurrency further impetus. Just under 630 million LUNC tokens were burned in the past three days, reducing the available supply.
This continued supply crunch is driving the demand and price growth. The other focus has been on the monthly burn by Binance on May 1.
The size of the burn is anticipated to be greater given the heightened trading activity in April. The company continues to burn tokens using proceeds from its spot and margin trading fees.
Derivatives trading volume on major exchanges has also been increasing to support the rally. CoinGlass data shows that LUNC open interest increased to $37.85 million during the rally. This reflects the renewed interest in speculations and positioning by short-term traders.
LUNC Gains Momentum as Network Upgrade and SEC Settlement Shape Outlook
The community is also looking to the Terra Classic v4.0.1 network upgrade proposal currently under voting. This is until May 6 and will improve the network’s performance and address earlier network problems. Sentiment has also been influenced by other legal moves by Terraform Labs.
The company has settled with the U.S. Securities and Exchange Commission and is moving forward with bankruptcy burns. This might help expedite the shift to a community-led governance structure.
The development of the network continues to provide additional support for the price movement.
Looking ahead, there are prospects for the return of Galaxy Station and potential exchange listings in the future.
How High Can Terra Classic Price Go?
At the time of writing, the LUNC price surged at $0.0000746, and is still rising following a strong run over the past few days.
The Relative Strength Index (RSI) is still around 70 which is strong but approaching overbought levels. The Chaikin Money Flow is also positive, which means there is considerable money flowing into the token.
The next resistance will probably be at $0.000080 and the upper trendline. If the price of Terra Classic keeps rising, it will hit the next resistance at $0.0000900. A further rise could bring the price to the psychological level of $0.00010. The support is at the lower trendline of the channel, $0.000070. If it fails, it may pull back towards $0.000060.