In a recent turn of events, investors in Terra Classic (LUNC) have experienced setbacks amidst a turbulent market, with the token witnessing a sharp decline in value over the past few weeks. The bearish market conditions have played a pivotal role in this downturn, causing a ripple effect on the blockchain’s staking ecosystem.
LUNC’s price exhibited a significant double-digit drop last week, plummeting by over 25.20%, as reported by CoinMarketCap. This sudden depreciation likely instilled apprehension among stakers, prompting many to hastily unstake their LUNC tokens.
Consequently, the staking ratio of LUNC experienced a decline, reaching a low of 14%. However, the tides soon changed in favor of the token, with the staking ratio rebounding and resting just below the 15% mark.
Data from LUNC Metrics revealed that over 1 trillion LUNC were staked, indicating a renewed interest in the token’s staking mechanism. This resurgence might be attributed to a slight recovery observed in LUNC’s price chart, with the bearish momentum slowing down as the token recorded only marginal losses in the last 24 hours.
Terra Classic is trading at $0.00009346, marking a marginal decline of 3.78% in the last 24 hours. The market capitalization exceeded $540.66 million and secured its position as the 101st largest cryptocurrency.
Noteworthy is the spike in LUNC’s social volume on January 24, 2024, correlating with a modest uptick in its price. This surge in social activity contributed to an increase in bullish sentiment, evidenced by the rise in its weighted sentiment on the same day.
Analyzing the market indicators, the MACD signaled a contest between the bulls and bears for control. Terra Classic’s Relative Strength Index (RSI) and Money Flow Index (MFI) converged toward the oversold zone, potentially heightening buying pressure and facilitating a price upswing. However, the Chaikin Money Flow (CMF) retained a bearish stance with a noticeable downtick.
As the Terra Classic ecosystem adeptly navigates through these dynamic market fluctuations, seasoned and new investors remain cautiously optimistic. They are keenly anticipating further significant developments in the coming days, eagerly observing the unfolding market trends and potential opportunities.