Amid the market-wide recovery going on in the crypto market, altcoins such as Terra Classic (LUNC) have stood out to crypto analysts due to their fundamentals being more bullish than others. Crypto analyst Mr. Diamondhandz has elaborated on how bullish the LUNC price is and why it is ready for a blow-off top.
LUNC Is A Pressure Cooker Ready To Explode
In an analysis shared on X (formerly Twitter), the crypto analyst singled out LUNC as one of the altcoins that is ready to rally. This analysis showed the movement of the altcoin over the last few months, which has managed to maintain a consistent support level above $0.00007.
The analyst also points to the Terra Classic community remaining strong as well as support for Binance as other reasons why the LUNC price is ready to rally. Binance, the largest crypto exchange in the world, has continued to support the Terra Classic community by burning fees generated from LUNC trading on the platform.
These burns have worked to help reduce the supply of LUNC, thereby giving it more value in the open market. In the last iteration of its scheduled burns, the crypto exchange sent over 2 billion tokens to the burn address at the start of February, before burning another 135,000 tokens on the same day.
As expected, these burns gave the altcoin a much-needed push, sending the trading volume soaring 700% and the price saw 20% gains as a result. As the community remains strong and more burns are expected from the crypto exchange, the bullish narrative for the LUNC price continues to grow.
Can Terra Classic Community Successfully Recover?
The crash of the Terra network, which led to the absolute decimation of the LUNC token, is a tale that will not soon be forgotten by crypto investors. The collapse of the network triggered the bear market, which started in 2022, and the token has suffered as a result since then.
Nevertheless, the community has not given up on the coin and has continued to implement proposals in a bid to help the token recover. However, not all of the proposals have gotten approval from the Terra community, which is required to make any move.
One of the revival proposals that have been rejected is the ‘Signal Prop Investigate EVM Functionality’ proposal, which aims to include EVM compatibility on the Terra blockchain. This would have meant that the blockchain would become interoperable with EVM blockchains such as Ethereum.
The proposal would eventually be rejected by the community, with the majority of validators voting against it. According to Allnodes, a Terra Classic validator, cost concerns were the major drivers for the proposal being rejected.