LUNC price surges 10% in 24 hours, but predictions foretell a reversal

• Bullish sentiment around LUNC became dominant in the last 24 hours. 
• The price rise could be caused by LUNC’s latest proposal. 

Terra Classic [LUNC] surprised investors recently by registering double-digit gains. Its trading volume also skyrocketed alongside.

Meanwhile, the LUNC community became ready to submit a proposal, which, if passed, can have a major impact both on the blockchain and its token. 

LUNC is pumping

AMBCrypto’s look at CoinMarketCap’s data revealed that in the last 24 hours alone, LUNC was up by more than 10%. While the token’s price surged, its trading volume also increased by more than 700%.

Significant price changes are frequently preceded by spikes in volume, which signify higher interest in the market, suggesting that the ongoing trend might continue longer.

Terra Classic’s one-week price volatility gained upward momentum after a sharp drop. The token’s popularity went up in the last few days as well, as its social volume spiked.

Additionally, the price uptrend helped increase bullish sentiment around the token, which was evident from the rise in its Weighted Sentiment. 

Source: Santiment

LUNC’s Funding Rate was also high, meaning that derivatives investors were actively buying the token at a higher price. The concerning metric was Open Interest, which went down despite the price hike.

Whenever Open Interest declines, it indicates that there are rising possibilities of a trend reversal.

Source: Santiment

Therefore, to check whether the trend would last, AMBCrypto took a look at LUNC’s 4-hour chart. Terra Classic’s MACD displayed a massive bullish advantage in the market, hinting at a continued price uptick.

However, the rest of the metrics were bearish, indicating that the trend might end soon.

For instance, the Relative Strength Index (RSI) took a sharp downturn from the overbought zone and was headed further down at press time.

LUNC’s Chaikin Money Flow (CMF) also followed a similar declining trend, indicating 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 mentioned the need to burn through LUNC supply quickly to see significant price appreciation. 

Another major problem for LUNC was that it faced manipulation by anonymous bad actors, such as scammers.

If the new proposal gets passed, it would remove 99% of bad actors quickly, in turn securing the blockchain.

Read Terra Classic’s [LUNC] Price Prediction 2024-25

It will burn an estimated 50% of supply within 90 days, which might have a positive impact on the token’s price action over the months to follow.

According to LUNC Metrics, to date, there have been 97.98 billion LUNCs burned.