- The price increase did not help change market sentiment as weighted sentiments remained negative.
- Market indicators suggested that the price uptrend could end soon.
Binance made an announcement on 23 May regarding Terra Classic [LUNC], which could strongly impact the ecosystem in the coming days. As per the latest announcement, the crypto exchange will support the upcoming network upgrades for both LUNC and Fetch.ai [FET].
Read Terra Classic’s [LUNC] Price Prediction 2023-24
The Terra network upgrade took place on 23 May 2023, as per the announcement. To support the upgrade, Binance has halted deposits and withdrawals of LUNC.
All about Proposal 11515
Terra’s network upgrade was regarding its latest proposal 11515, which intended to change the LUNC burn rate.
As the network upgrade rolls out, Terra Classic’s burn tax will increase to 0.5%. The proposal mentioned that the burn tax is a form of currency transaction tax, such as the Tobin Tax.
Normative economists have suggested financial transaction tax rates of 0.1% to 1%, whereas James Tobin himself suggested a rate of 0.5% in an interview.
Terra Classic was quick to respond
As the network upgrade took place, LUNC’s price registered a slight uptick. According to CoinMarketCap, LUNC’s price increased by more than 1.2% in the last 24 hours.
At the time of writing, it was trading at $0.00008825 with a market capitalization of over $517 million. The good news was that the price hike was accompanied by a double-digit increment in volume, which in general is a positive signal.
Market sentiment remained negative
Santiment’s chart revealed that LUNC’s popularity improved last week as its social volume remained high. However, most of the mentions were supposedly bearish for LUNC, as evident from the dip in its weighted sentiment.
Moreover, as per LunarCrush, bullish sentiment around LUNC decreased by more than 33% last week.
Source: Santiment
Realistic or not, here’s LUNC’s market cap in BTC terms
Investors should be cautious
LUNC’s 24-hour price action looked bullish, but the trend might not continue for long. The Exponential Moving Average (EMA) Ribbon suggested that the bears were still controlling the market.
Terra Classic’s Relative Strength Index was resting below the neutral zone. The Money Flow Index also registered a sharp decline, increasing the chances of prices plummeting in the coming days. The Chaikin Money Flow gave hope for a hike uptrend as it went up.
Source: TradingView
