Terra Classic (LUNC) has had quite a remarkable surge over the past week due to a convergence of potential game changers and traders’ fear of missing out.
The price of Terra Classic (LUNC), a struggling native token of the ancient Terra network, increased from a low of $0.00084 on August 21 to a high of $0.00307 on September 2, reflecting an increase of nearly 265%, though prices have since slightly reversed.
The token price separated from the remainder of the global crypto market, which is in a sea of red and is hovering around the $1 trillion level, and the bullish run, which has investors wondering where this token might be headed. The token’s market cap also increased by about $1.5 billion in just two weeks according to CoinMarketCap.
The demand for LUNC has temporarily restored investor confidence in a project that cost investors more than $60 billion in May of this year. Although Terra developers have switched to the new chain, the LUNC pump is community-driven, with members of the community burning LUNC tokens to help push up the price.
Several Terra Luna price movement indications suggest that the token may soon begin to drop. The Relative Price Index (RSI), which is currently at 62, indicates that LUNC is moving toward the overbought areas. If the buyers begin to dump, the pressure from sellers can reverse the gains.
The community-backed burning of LUNC tokens may have driven prices of LUNC and its sister token USTC, but given the absence of fundamentals to support the growth and the uncertainties surrounding the Terra ecosystem, the LUNC pump currently seems excessive.