Terra Classic is Pumping As the News of 1.2% Burn Tax Hit – How high will it Go – InsideBitcoins.com
Terra Classic has continued to surprise everyone in the market with its latest pumping rally. Since last week, it has been reaching one high after another ever since the news of the 1.2% burn tax hit. The massive buy-ins are leading to a daily rise in double digits.
So as Terra Classic is pumping as the news of the 1.2% burn tax hits the market, how high will it go? Will it keep true to its momentum and continue to defy market expectations, or is there a “mega” retrace coming that would make most say, “we told you so”? Let us find out.
What is the reason behind Terra Luna Classic Pumping?
One thing you must outright understand about this crypto is that it doesn’t have strong fundamentals or a better use case. After the great Terra Crash plunged the entire crypto market, Terra went from $112 to near zero. The hard fork was an attempt to revitalize the ecosystem, and for the most part, it succeeded.
The other part of that fork was handed over to the community, who continued to be bullish about this crypto despite it being the cause of their major losses. In a bid to control its hyper-inflated supply, the community started the #lunaburn campaign, burning LUNA by sending it to the burn address provided by Do Kwon, the original founder of the terra ecosystem.
While the number of tokens burned was minuscule at first, the last week of last month, August, saw a rapid decline in the total supply of LUNC tokens. At the time of writing, the circulating supply is 6.15 trillion.
And since the investors are more than willing to put their faith in an asset that’s going scarce, they decided to rally behind LUNA. The price rise accelerated after the LUNC community announced the 1.2% burn tax. It came with LUNC validators approving the proposal to Update Terra to version 0.5.22.
That update signifies their dream to push Luan back to its old ecosystem when the price was extremely high. The validators have also asked Binance to activate the burn tax, which the leading cryptocurrency exchange has agreed to.
Terra Price Prediction: Where is the Price Heading To
The Terra Pump action is not showing any signs of slowing down. Despite the weak fundamentals of the project, the original LUNC community is bullishly engaging in massive buy-ins, making huge engulfing patterns in the trading view.
We can attribute this sudden interest to two reasons. One is the introduction of Terra Update, which made staking once again possible, with staking rewards that go as high as 42%. Another is the recently introduced burn tax.
All these factors have compounded to make LUNC go from $0.00015 to $0.00040. But the opening wick for today is near to $0.00045, which will likely act as its resistance at 0 Fib but only for now.
Considering the bullish engulfing pattern this crypto is forming, we believe another bullish intraday rally will push this crypto past $0.0005. A couple of weeks ago, this might have been an outlandish claim to make, but the token has followed a reversal pattern from the standard crypto sentiment of the market and has continued to climb the price charts.
The burning has also skyrocketed, with the community trying (desperately) to get this token to 10 billion. From the price chart, we can clearly see that the token is far beyond its ATH of $0.0002 just a couple of days ago.
However, historically all the cryptos that have gone up parabolically in the past have retraced significantly later. That’s especially the case with cryptos with fewer use cases. So, by looking at the daily candles of LUNC, we can say that if the LUNC fever starts to slow down, then it might retest $0.0035 at 0.236 fibs,
That said, it won’t be wise to make a definite prediction during this time, as whatever we’ve been able to get from Crypto Twitter makes us understand that, at least for now, the LUNC backers have no intention of backing down their support. In fact, because of the long green candle formed the previous day, we have a reason to believe that more backers will come.
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What is Terra Classic?
Terra Classic is the original Terra Blockchain that got rebranded after its downfall. The crypto associated with the old blockchain thus now go buy LUNA classic, LUNC, instead of LUNA.
It is open source crypto, using a Proof-of-Stake consensus mechanism to support Stablecoins and global payments. But that doesn’t hold up anymore as the UST doesn’t exist now.
However, the introduction of the burn mechanism has made this crypto deflationary – giving hope to the early LUNC backers to hold on to their assets and ride the wave of high prices as long as it lasts.
Tamadoge and Lucky Block – Other Deflationary Crypto That are Far Better alternatives.
So far, LUNC has been driving on the back of an overly-bullish crowd that many believe don’t know better. The FOMO impact is high, which adds to the buying pressure. While this token has gone deflationary, there is no logical way for it to reach the $1 valuation that the entire Twitter LUNC community is gunning for.
It is instances like this which make it more suitable to sit back and look for alternatives, like Tamadoge and Lucky Block. They both are deflationary cryptos with much better use cases and high rewards.
Tamadoge is a Play2Earn ecosystem in which the users can buy Tamadoge Pets in exchange for TAMA tokens and use them to battle in a PVE environment. The goal of this project is to create a crypto game that focuses as much on fun as it does on the earning aspect.
Players will be rewarded with TAMA tokens if they accumulate the greatest number of Dogepoints by the end of the month. This unique use-case, coupled with the fact that it is one of the best memecoins in the market, has made Tamadoge one of the best memecoins this year.
This token has raised almost $12 million at the time of writing and is getting closer to the 8th phase of its presale.
Another deflationary cryptocurrency that makes for a much better use case than Tamadoge is Lucky Block. It is crypto powering the NFT competitions platform that allows LBLOCK holders to win many prizes, ranging from $1 million in Bitcoin to a Lamborghini.
LBLOCK is one of the most undervalued cryptos this year and has two versions – V1 and V2. Lucky Block V1 is used for participating on the platforms, and Lucky Block V2 is used for trading.
The team is also getting ready to launch the Lucky Block ETH bridge, allowing users to swap between Lucky Block V1 and Lucky Block V2.
Tamadoge – Play to Earn Meme Coin
- Earn TAMA in Battles With Doge Pets
- Capped Supply of 2 Bn, Token Burn
- NFT-Based Metaverse Game
- Presale Live Now – tamadoge.io