Terra Classic (LUNC) is currently valued at $0.00009125, reflecting a substantial growth of 122.37% in the last month, with a noteworthy 24-hour trading volume of $372.6 million.
This price surge could potentially signal a revived interest from investors. However, there are debates surrounding the nature of the current increase in value: Is it a temporary spike or indicative of a sustained upward trajectory?
LUNC is up 18.73% on the day with a $672.4 million market cap after adding around $330.7 million to its market cap in the last month.
The spike appears to be driven by the recent Terraform Labs investment of $15 million into the Terra ecosystem and a substantial reduction of LUNC tokens in circulation to 5.8 trillion, with about 78.2 billion tokens burned.
“TFL’s capital injection solves the cold start problem for the Terra ecosystem, providing ample liquidity for users” was posted on Terra’s official X account.
Technical Analysis
LUNC is currently trading at $0.00009125, up 35.59% in the past 24 hours, and has had a strong uptrend since the capital injection.
Meanwhile, the Relative Strength Index (RSI) indicator at the bottom is currently at 86.87, indicating that LUNA is overbought, according to Kelvinmunene422 on TradingView.
This means that the price of LUNC has risen too quickly and may be due for a correction. However, the RSI is still below 90, suggesting a mild correction.
Investing in an emerging crypto asset could generate a high return on investment (ROI), but the risk of it crashing is also high. Nevertheless, it might benefit investors with a higher risk tolerance to allocate a small percentage of their portfolio to a riskier asset.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
