Key Takeaways:
- LUNC prices swelled by nearly 86% in just two days.
- The rally is likely driven by the staking and burning mechanism introduced recently.
- However, downside risks remain for the Terra Classic token.
NEW DELHI (CoinChapter.com) — Terra Classic (LUNC) prices fell on Sept 6 after a ridiculous rally saw the token jump nearly 86% in two days.
LUNC, the token born from the ruins of the LUNA-UST collapse earlier this year, has been growing steadily over the past couple of weeks. The rally halted for a while on Sept 2, but LUNC prices then took off again on Sept 5.
The token jumped 86% between Sept 5’s low ($0.00024) and Sept 6’s high ($0.00045) before the bears started selling. As a result, Terra Classic’s price fell more than 17% between intraday high ($0.000424) and low ($0.000345) levels on Sept 7.
However, bulls started a fightback later in the day, as the long lower tail on the day’s candle indicates. Meanwhile, the relative strength index for LUNC remains in the overbought region, with a value of 88.43 on the daily charts.
The technical indicator measures the magnitude of recent price changes to analyze overbought or oversold conditions. Traders often consider overbought RSI values as a sell signal, which might be a probable reason behind the LUNC price’s rally stalling.
Community Support Behind Terra Classic Price Rally?
Terra Classic price has picked momentum on the back of community involvement. LUNC supporters showed immense support for the recently introduced staking and burning mechanism. The community rallied behind Terra Classic news about recent network upgrades to the beleaguered blockchain.
Related: WTF! Luna Classic pops 195% in 10 days despite Terra debacle.
LUNC supporters have staked nearly 529 billion tokens since Terra Classic developers introduced staking on the platform. Moreover, the LUNC community has burned nearly 3.5 billion tokens. Meanwhile, Terra Classic’s 24-hour volume reached $2.75 billion on Sept 7.
LUNC supporters believe that Terra Classic price might reach its short-term target of $0.01 in Sept if the momentum continues.
Additionally, Terra Classic recently announced several governance proposals, upgrades, etc., that will likely help propel the token’s prices. However, with an overbought RSI and a massive overall supply of 6.1 trillion tokens, LUNC price action would require more than community excitement to maintain its bull run.
But, Not Everyone Is A Fan Of LUNC
David Gokhshtein, crypto influencer and the founder of Gokhshtein Media, took to Twitter to share his views on Terra Classic and LUNC price.
Gokhshtein believes only gamblers looking for a quick profit by buying the Terra Classic token. The crypto influencer’s tweet was in response to another user’s comments stating that LUNC is a scam.
“I would rather see a meme coin like SHIB trending instead of LUNC scam… Who is buying this?“
The Tweet read
In addition, David emphasized that the Terra revival lacks fundamentals, stating that “it’s a lottery ticket.”
At writing, LUNC was trading at $0.00039, down 0.58% on the day.
Click here to know the chances of LUNC continuing its bull run into 2023.
