Terra Classic (LUNC): Why 60% Upsurge Shouldn’t Blindside Traders

Terra Classic holders enjoyed gains during the September 26 intraday session as the alternative token surged more than 30% after Binance’s announcement. Renowned trading platform, Binance, published a blog announcement on September 26.

Binance informed its customers about a planned burn protocol that would burn fees paid on LUNC margin and spot trading pairs. The exchange intended to accomplish this by transferring trading fees to Terra Classic burn address.

The earlier announcement by Binance exec Changpeng Zhao confirmed a discretionary 1.2% tax in LUNC trading. That was to be permanent if traders that opt-in had hit 50% of LUNC trading volume on Binance.

Nevertheless, the Terra community appeared against Zhao’s approach. Therefore, the new strategy is to burn fees on LUNC margin and spot trading pairs.

LUNC Price

Coinmarketcap data showed LUNC trading at $0.0003032 during this publication. That came after the alternative gained more than 60% within a day.

With substantial trading during this publication, LUNC’s trading volume had soared by 287%. The previous 24 hours had trading volume hitting $2.29 billion, according to Santiment data.

A crypto social analytics site LunarCrush also discovered that LUNC hit 9550 in social mentions within an hour after the Binance announcement.

LunarCrush revealed that it represented the highest figure LUNC recorded over the past 90 days. Besides the 30% intraday peak, Terra Classic’s social dominance increased by more than 47%, whereas social engagements surged over 86%.

A 4Hr Check

The 4-hour chart had crucial indicators revealing the lucrative movement. While writing this content, the RSI (Relative Strength Index) raced new peaks around the overbought territory at 62.

Also, the MFI (Money Flow Index) stayed at 65. The surged buying momentum over the past four hours had the CMF (Chaikin Money Flow) retesting 0.16 – beyond the center line.

Before Locking Your LUNC Trades

Assessing Terra Classic’s daily chart movement revealed a different story. While the alt’s trading volume and price noted impressive highs, the daily chart suggested a drip in the market craze that emerged after Binance’s announcement.

While publishing this post, the MFI and RSI maintained downtrends at 53 and 52 and sought to breach their neutral regions. Also, the CMF at -0.03 highlighted fading buying pressure. Traders can expect downsides in the coming hours or days.

Editorial credit: Maurice NORBERT / shutterstock.com

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