Terra Classic soars 30% in 7 days, but will LUNC see a price correction?

• LUNC’s price surged over 30% in the last seven days. 
• A few indicators hinted at a possible price correction. 

Terra Classic [LUNC] has once again come into the limelight with a promising performance over the last 24 hours. Meanwhile, investors’ interest in trading the token skyrocketed.

Let’s take a look at what’s going on and find out what to expect from the token in the coming days. 

Terra Classic is pumping 

Terra Classic has been on a gaining spree, as its price increased by more than 30% in the last seven days. According to CoinMarketCap, in the last 24 hours alone, the token witnessed a 16% price rise.

At the time of writing, LUNC was trading at $0.00009364 with a market capitalization of over $509 million. Alongside, its trading volume increased by more than 160% in the last 24 hours.

Generally, a rise in volume along with price acts as a foundation for a bull rally, indicating investors’ willingness to trade the token.

AMBCrypto’s look at Santiment’s data revealed that the bull rally also had a positive impact on its social metrics. The token’s Social Volume increased sharply, meaning that LUNC’s popularity was rising.

Nonetheless, it was surprising to note that its Weighted Sentiment remained in the negative zone, suggesting that bearish sentiment was dominant in the market. 

Source: Santiment

Things in the derivatives market looked pretty optimistic, however.

AMBCrypto’s look at Coinglass’ data revealed that LUNC’s Long/Short Ratio improved, meaning that there were more long positions in the market than short, at press time.

This suggested that investors were expecting the token’s price to rise in the coming days. 

Will LUNC’s rally last?

We then took a look at the token’s daily chart. As per our analysis, LUNC was testing its crucial resistance at press time. It would be crucial for Terra Classic to go above that mark in order to maintain its bull rally.

The technical indicator MACD displayed a clear bullish advantage in the market. However, the Relative Strength Index (RSI) registered a slight downtick, which could cause trouble. 

Source: TradingView

We then checked its liquidation heatmap to find out its short-term targets. A substantial amount of LUNC got liquidated when its price touched $0.000086.

This hinted at a possible price correction in the coming days. If that happens, then LUNC might enter a consolidation phase. 

Source: Hyblock Capital

Read Terra Classic’s [LUNC] Price Prediction 2024-25

In the meantime, LUNC’s sister token, Terra [LUNA], also turned bullish. In the last 24 hours alone, its value surged by more than 9%.

At the time of writing, LUNA was trading at $0.4519 with a market capitalization of over $359 million.