Key Takeaways:
Terra Classic’s LUNC token climbed 12% in the last 24 hours to a price of $0.0000750 as of 17:25 UTC, capping a weekly gain of over 60 percent that pushed the token to a four-month high. The surge comes on the back of accelerated token burns and renewed trader speculation ahead of a key network vote.
“The rally is backed by real flow: rising spot volume, net exchange outflows (less immediate selling), and sustained trend strength,” one AI-driven market analysis noted. Data from CoinGlass shows open interest in LUNC derivatives rose to $37.85 million, reflecting renewed speculative interest.
The primary driver appears to be a significant reduction in token supply. According to LUNCMetrics data, nearly 630 million LUNC tokens were burned in the last three days, with another 176 million removed on April 27 alone. The upcoming monthly burn from Binance on May 1 is expected to be larger than usual following heightened trading activity in April, further tightening supply. Data indicates net outflows from exchanges of roughly $293,000, suggesting holders are moving tokens to storage rather than preparing to sell.
This price action comes as the Terra Classic community votes on proposal v4.0.1, a network upgrade designed to improve performance, with voting open until May 6. The move follows a settlement between Terraform Labs and the U.S. Securities and Exchange Commission. While momentum is strong, technical indicators suggest caution. The daily Relative Strength Index (RSI) is above 83, deep in overbought territory, which often precedes a price correction. Immediate resistance is seen between $0.000071 and $0.000080, with a key structural support level at $0.000062.
This article is for informational purposes only and does not constitute investment advice.
