- Terra Classic’s (LUNC) over 100 percent rally in September has forced analysts to look into how October could be for the cryptocurrency.
- The recent 1.2 percent burn tax on LUNC has caused the price of the altcoin to shoot higher this week.
While the broader cryptocurrency market continues to exhibit strong volatility, altcoin Terra Classic (LUNC) has shown a strong price rally this week. The LUNC crypto has rallied more than 100 percent over the last month despite considerably correcting from its monthly high on September 9.
Despite the collapse of the Terra ecosystem earlier in May, the Terra Classic (LUNC) remains one of the most heavily traded altcoins in the market. LUNC remains among the top-ten most-traded cryptocurrencies with daily trading volumes close to $750million.
However, the bigger question here is whether LUNC will continue with the price rally. Popular crypto trader and analyst Altcoin Sherpa has put a red flag suggesting a massive fall in the price.
In a Twitter message to his more than 183,000 followers, Sherpa said that the price of LUNC is “going to nuke” eventually. He also added that he can only buy LUNC for very short only if it falls to the key Fibonacci levels of 0.5 (50%) and 0.618 (61.8%). In his Twitter message, Sherpa wrote:
Still a massive shitcoin, I would only long at the .50 and .618 as scalps. Look higher for any potential shorts; this one is going to nuke to hades eventually. Dont buy this for the long term IMO.
Note that the founder of Terra Classic – Do Kwon – is currently in search of Interpol. The South Korean prosecutors have issued an arrest warrant for Kwon over the collapse of the Terra ecosystem which eroded more than $60 billion of investors’ wealth.
Why is LUNC rallying this week?
Earlier this week on Tuesday, the LUNC price shot up as there were reports of burning the excess LUNC supply. Lithosphere network core developer KaJ Labs is planning to burn 2.5 trillion LUNC along with the Jot Art Finesse NFT collection and mixed RPG play-to-earn “Finesse” gameplay.
Note that the current supply of Terra Classic (LUNC) is 6.8 trillion. The community is planning to reach 10 trillion with the 1.2 percent tax burn or other burn mechanisms. So far, 6.6 billion LUNC tokens have been burnt. Of them, 2.3 LUNC have been burned through tax, and the other 4.3 Billion by sending to the burn address.
Some of the world’s largest crypto exchanges including Binance, Huobi, KuCoin, Kraken, and others have extended their support to the community with the burn mechanism.
With the recent 1.2 percent tax burn initiated by Binance, the daily burning rate of LUNC has reached over 450 million LUNC tokens. this was the major reason behind the rally in the price of Terra Classic (LUNC) this week.