LUNC burns 100M tokens, price rises 6% in 24 hours

• LUNC was up by 6% in the last 24 hours, while its Open Interest increased. 
• USTC’s daily chart was also in the green, but its social metrics dropped. 

Terra Classic [LUNC] has stepped up its game at the start of 2024, showing its deflationary characteristics. Not only did it prove the token’s commitment to re-establish the network, but it also had a positive impact on LUNC’s price action.

Terra Classic is burning fast!

LunaClassic HQ, a popular X (formerly Twitter) handle that posts updates related to the Terra Classic ecosystem, mentioned that the blockchain burned 100 million LUNC tokens on the 1st of January 2024.

AMBCrypto’s look at LUNCMETRICS data revealed a similar story. Notably, LUNC’s burn rate on witnessed a massive spike during this period. Thanks to the high burn rate, LUNC’s circulating supply dropped to 5.85 trillion at press time.

Source: LUNCMETRICS

A similar trend of spiking was noted in terms of LUNC’s price action as we entered 2024. According to CoinMarketCap, the token was up by nearly 6% in the last 24 hours.

At the time of writing, LUNC was trading at $0.0001447 with a market capitalization of over $845 million, making it the 84th largest crypto.

While its price surged, its Open Interest also shot up. For the uninitiated, a hike in this metric increases the chances of a continuation of the current price trend.

Nonetheless, Development Activity around the blockchain dropped substantially at press time — a negative signal.

Source: Santiment

Though the above metrics looked bullish, AMBCrypto’s look at its daily chart pointed out a few bearish indicators. For example, the Bollinger Bands revealed that LUNC’s price entered a less volatile zone.

Additionally, Terra Classic’s Relative Strength Index (RSI) was resting below the neutral mark, increasing the chances of a price decline.

Source: TradingView

USTC is also pumping

USTC, the Terra ecosystem’s stablecoin, also registered price gains. CoinMarketCap’s data revealed that USTC was up by more than 4% in the last 24 hours. At press time, it had a value of $0.03372 with a market cap of over $302 million.

Read Terra Classic’s [LUNC] Price Prediction 2023-24

Since the coin registered a price uptick, AMBCrypto planned to take a look at market sentiment around USTC. We found that its Social Dominance remained quite low last week.

Bearish sentiment was also dominant in the market, as evident from its low Weighted Sentiment.

Source: Santiment