Terra Classic: What a sudden surge in LUNC staking means
- Terra Classic was down by more than 22% in the last seven days.
- Sentiment around LUNC turned positive, and a few indicators were bullish.
Terra Classic [LUNC] investors suffered losses over the last few weeks as the token’s price plummeted sharply. Though the price drop can be primarily attributed to the prevailing bearish market condition, it did have a negative impact on the blockchain’s staking ecosystem.
Terra Classic staking is recovering
Terra Classic’s price dropped in double digits last week. According to CoinMarketCap, LUNC was down by more than 22% in the past seven days.
The drop in price might have sparked fear among stakers, because of which they started to unstake their LUNC tokens.
This resulted in a drop in LUNC’s staking ratio, which reached 14%. However, things once again changed in the token’s favor as its staking ratio increased and was resting just under the 15% mark.
As per LUNC Metrics’ data, at press time, there were more than 1 trillion LUNC staked.
A possible reason for the newfound interest in LUNC staking could be the slight recovery LUNC registered on its price chart. The token’s bearish momentum slowed down as its price only dropped marginally in the last 24 hours.
At the time of writing, Terra Classic was trading at $0.0000952 with a market capitalization of over $551 million, making it the 101st largest crypto.
Will LUNC manage to recover?
Though the bearish momentum somewhat declined, AMBCrypto took a look at other datasets to check whether LUNC could actually recover from its latest price correction in the near term.
Our analysis revealed that LUNC’s social volume spiked sharply on the 24th of January 2024, when its price moved up slightly. Thanks to that, bullish sentiment around the token increased, as evident from the rise in its weighted sentiment on the same day.
To better understand where LUNC was headed, AMBCrypto then checked its daily chart. As per the MACD, the bulls and the bears were in a tussle to gain an advantage over each other.
Both Terra Classic’s Relative Strength Index (RSI) and Money Flow Index (MFI) were headed towards the oversold zone. This can increase buying pressure on the token and, in turn, push its price up.
Nonetheless, the Chaikin Money Flow (CMF) remained bearish as it registered a downtick.
Realistic or not, here’s LUNC’s market cap in BTC terms
While LUNC was starting to recover from its losses, its sister token, Terra [LUNA], had already managed to paint its chart green.
According to CoinMarketCap, LUNA was up by more than 1% in the last 24 hours. At press time, it was trading at $0.5935 with a market cap of over $379 million.