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Binance burn and bullish momentum drive Terra Classic (LUNC) price surge

TL;DR

  • Binance burn & bullish momentum propel LUNC’s price surge.
  • Technical indicators suggest continued upside potential for LUNC.
  • Market dynamics and strategic burns highlight LUNC’s growing prominence.

In a remarkable turn of events, Terra Classic (LUNC) has witnessed an unprecedented surge, propelling its market capitalization beyond the $1 billion mark. 

Over the past 24 hours, LUNC’s price has soared by an impressive 29.45%, as reported by CoinMarketCap.

Bullish momentum and Binance burn to propel LUNC’s rally

The surge in LUNC’s price comes amidst a prevailing bullish sentiment in the cryptocurrency market. However, a significant catalyst contributing to this remarkable upswing is the recent Binance burn. 

Binance executed a burn of 2.21 billion LUNC tokens. This strategic move aims to enhance the token’s scarcity and subsequently increase its value, especially if demand surges.

Notably, ‘Vegas’, a prominent member of the Terra community, disclosed that the total number of tokens burned has surpassed the 100 billion mark. This burning spree underscores the concerted efforts to manage token supply and bolster LUNC’s market dynamics.

Technical analysis points to continued upside potential

A comprehensive analysis of the LUNC/USD 4-hour chart reveals a bullish momentum building since February 23. Despite encountering resistance, particularly around the $0.000011 support level, LUNC managed to break out, reaching $0.000014. At present, bullish candlesticks dominate the 4-hour timeframe, signaling minimal presence of sellers.

Assessment of the Relative Strength Index (RSI) indicates an overbought reading. However, despite this, there’s little indication of an imminent retracement as bullish momentum persists.

 The Fibonacci extension indicator highlights substantial upside potential for LUNC. Notably, the 0.618 Fib level sits at approximately $0.000016, suggesting any pullback may be minimal. Conversely, the 3.618 Fibonacci extension points to a potential rally towards $0.000030 if buying pressure intensifies.

Moving to the daily analysis, LUNC endured prolonged selling pressure until early February, when sellers appeared to exhaust their momentum. This exhaustion paved the way for the current surge in LUNC’s price.

 Notably, Coin Edition’s examination of the Exponential Moving Average (EMA) reveals a bullish trend, with the 20 EMA crossing over the 50 EMA.

 However, caution is warranted, as a potential death cross—where the 50 EMA flips the 20 EMA—could trigger a pullback towards $0.000012. Conversely, if LUNC maintains its position above both EMAs and sustains the golden cross, further upward movement may ensue.

Outlook and potential challenges

While LUNC’s rally demonstrates robust investor interest and positive market sentiment, potential challenges remain. 

Traders may opt to capitalize on gains, leading to short-term fluctuations in price. Additionally, regulatory scrutiny and broader market dynamics could influence LUNC’s trajectory in the coming days.

Prominence and potential in the Crypto landscape

Terra Classic’s remarkable surge past the $1 billion market cap threshold underscores the token’s growing prominence within the cryptocurrency landscape.

 With strategic burns, bullish momentum, and favorable technical indicators, LUNC appears poised for further gains. However, investors should remain vigilant and exercise caution amidst evolving market conditions.

By navigating the intricacies of supply dynamics, investor sentiment, and technical analysis, LUNC’s journey exemplifies the dynamism and potential of the cryptocurrency market. As stakeholders continue to monitor developments, the future trajectory of Terra Classic remains an intriguing narrative within the broader digital asset ecosystem.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Emman Omwanda

Emmanuel Omwanda is a blockchain reporter who dives deep into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), and more. His expertise lies in cryptocurrency markets, spanning both fundamental and technical analysis.

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