terra classic token could surge by 1000 percent

Even though the price of Terra Classic is down in the past 24 hours, the token accumulates a 280% gain in the past 30 days as momentum continues to be positive on the back of the potential implementation of a 1.2% tax that could lead to a massive asset burn.

Data compiled by CoinMarketCap indicates that $1.8 billion worth of Luna Classic (LUNC) have exchanged hands in the past 24 hours making it the 7th most traded cryptocurrency in the space within that period.

This trading volume is accounting for almost 80% of the token’s total market capitalization and emphasizes the significant buying interest toward LUNC at the moment.

Momentum Indicators Are Surging for Terra Classic (LUNC)

terra classic chart

LUNC/BUSD price chart – Source: TradingView

The chart above shows how Terra Classic is currently trading near its post-fork high of $0.00045 per coin from yesterday as the rally that started in late August appears to be taking a breather.

Momentum indicators are pointing to a significant change in the token’s momentum as the Relative Strength Index (RSI) is surging to 80 – overbought – while the MACD is rising to its highest level since the original Terra network was forked.

At these levels, the two indicators are favoring a short-term bearish outlook and a mid-term bullish outlook at the same time.

The reason for this is that once the RSI and MACD reach elevated levels this is typically interpreted as an overbought signal meaning that buying interest has increased too much in a relatively short period.

When that happens, traders may progressively unwind their positions to take profits and that results in a decline in the value of the asset in the near term.

However, whenever momentum indicators move from oversold to overbought levels in relatively short periods – which is the case for Terra Classic – that can be interpreted as a shift in the price trend that could lead to further gains in the mid-term.

What is Terra Classic and What is Fueling the Current Rally?

Luna Classic is the native token of the original Terra network. This blockchain project suffered a big setback in May this year after its flagship stablecoin UST drifted off its peg and caused billions of dollars in losses for investors across the world.

The developing team behind the project – Terraform Labs (TFL) – opted to hard-fork the network and renamed its predecessor by adding the phrase Classic to the name of both the blockchain and its flagship tokens Luna and UST.

However, supporters of the original Terra network and speculators have been advocating for an effort to restore at least a portion of the project’s former glory by burning a large number of LUNC tokens via the introduction of a transaction tax.

The odds that such a proposal will be implemented have increased lately as KuCoin, a prominent centralized exchange, stated that it will support the network’s upgrade for this particular purpose.

In addition, a member of the community has presented what has been the most comprehensive roadmap to incorporate the tax.

Luna Classic Video Analysis

Binance to Shut Down Shuttle Bridge – A Threat to LUNC’s Rally

Binance, the most relevant exchange in terms of trading volumes for Luna Classic, has recently announced that it will be suspending its support of the Shuttle bridge on 7 September.

This bridge allowed users to trade LUNC by using the Ethereum blockchain or BNB Smart Chain. From now on, they will only be able to trade it by using the Terra network and that could increase transaction costs and reduce liquidity for the token dramatically.

Momentum readings indicate that the price of Terra Classic could keep surging in the next few weeks. However, there are still significant milestones that need to be completed if the rally is to continue including the successful implementation of the transaction tax.

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