Investors in Terra Classic (LUNC), the original chain of the collapsed Terra (LUNA) token, are still showing faith in the digital asset despite its diminishing utility. Amid the prevailing market bearish conditions, the token appears to embark on a bullish upward movement.
As things stand, LUNC has a market capitalization of $965.68 million, recording an inflow of about $73.49 million within a week from $892.19 million on November 29, according to CoinMarketCap data.
Consequently, the short-term buying pressure has partly influenced the value of LUNC, which was trading at $0.00016 by press time, gaining over 2% in the last 24 hours. The weekly chart indicates that the token has surged by over 8%.
Why LUNC is rallying?
Although the trigger for LUNC’s rally cannot be singled out, it is worth noting that the community has previously engaged in short squeezes as part of regaining the lost highs. The strategy is mainly coordinated through social media as the community aims to replicate the growth trajectory of meme cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB).
At the same time, LUNC’s latest buying pressure follows a temporary rally in the broader crypto market.
The gains come in the backdrop of sustained network development, with the deployment of the Terra Classic v22 upgrade standing out as a critical aspect. The upgrade seeks to enable governance changes, staking, and burn.
Furthermore, the Terra Rebels introduced the v23 upgrade intending to re-enable inter-blockchain communication between Cosmos blockchain and the Terra Classic system.
Notably, there is also accelerated activity regarding reducing LUNC’s supply in the market, with the community burning about 402 million tokens per day.
LUNC technical analysis
The technical analysis for LUNC remains bearish, with a summary going for a ‘sell’ at 10 on the daily gauges. Moving averages are for a ‘strong sell’ at 10, while oscillators are for a ‘buy’ at two.
Interestingly, the LUNC community is projecting a sustained bullish uptrend for the asset. As reported by Finbold, the LUNC community on CoinMarketCap predicted that the asset will end the year at $0.00025.
Moving forward, the LUNC community will likely keep tabs on the developments around the case facing founder Do Kwon. Notably, past progress by the prosecution has resulted in LUNC’s price tanking.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.