- LUNC’s price declined sharply over the last month.
- However, its 24-hour chart was green, and metrics looked bullish.
Terra Classic [LUNC] observed a drop in its staking ratio in the last 24 hours, which earlier was on a rise. A drop in the metric generally indicates less confidence among stakers in a particular asset. Was LUNC’s declining price action over the last few weeks the reason behind the drop in stakers’ confidence?
Read Terra Classic’s [LUNC] Price Prediction 2023-24
Stakers losing confidence in Terra Classic?
For starters, staking is a process where users lock up their assets with a validator to earn rewards. On the LUNA Classic blockchain, it takes 21 days to unstake LUNC, meaning that stakers must wait for 21 days to withdraw their holdings.
Throwing light on the latest development, the percentage of LUNC staked registered a decline in the last 24 hours. This meant that users were unstaking their holdings, suggesting that their confidence in the token was low. At press time, LUNC had a staking ratio of 14.92%. This was concerning as the ratio was on a rise for multiple weeks prior to the latest downtrend.
Source: LUNC METRICS
A possible reason for the episode could be LUNC’s declining price trend. Over the last month, the token has bled significantly, which might have instigated stakers to unstake their assets.
However, a check of LUNC’s on-chain metrics did not suggest a drop in investors’ confidence. This was evident from the recent rise in the token’s weighted sentiment. Not only that, but Terra Classic’s social volume also remained high, reflecting its popularity in the crypto space.
Source: Santiment
The good news was that, along with its price, the token’s open interest also declined. Generally, a drop in open interest suggests a trend reversal. This turned out to be true, as Terra Classic’s price gained bullish momentum in the last 24 hours.
According to CoinMarketCap, LUNC was up by 1.2% in the last 24 hours. At press time, it was trading at $0.00007866 with a market capitalization of more than $457 million. Its 4-week price volatility also moved up, increasing the chances of a continued uptrend. If the price trend continues, then stakers might continue staking LUNC in order to earn profits.
Source: Santiment
How much are 1,10,100 LUNCs worth today
Going forward
A few of the market indicators were also in the buyers’ favor. For example, the Relative Strength Index (RSI) registered an uptick and was headed towards the neutral mark.
Terra Classic’s Chaikin Money Flow (CMF) also followed the RSI and moved up. However, the Exponential Moving Average (EMA) Ribbon was still bearish, as the 20-day EMA was well below the 55-day EMA.
Source: TradingView