Terra Classic achieved double-digit growth last week, but this trend may change soon.

Like most cryptocurrencies, Terra Classic [LUNC] has also driven the development of accelerators, with its price soaring by double digits. Meanwhile, an interesting event occurred that could further push the token's price higher.

Therefore, AMBCrypto checked the on-chain data of Terra Classic to understand the expected situation.

Terra Classic is booming.

CoinMarketCap data shows that LUNC bulls dominated last week, driving the token's price up by more than 18%. In the past 24 hours, as the token's value rose by over 6%, the bullish trend continues.

As of this writing, LUNC's trading price is $0.00009981, with a market capitalization exceeding $544 million, making it the 130th largest cryptocurrency. The positive price trend has indeed affected the token's social metrics.

According to our analysis of Santiment data, LUNC's social volume has increased, reflecting its rising popularity. However, after the sharp rise, Terra Classic's weighted sentiment has declined.

This decline indicates that bearish sentiment around the asset is rising, which could lead to a price correction.

AMBCrypto also noted that the burn rate of LUNC has surged dramatically over the past few days. Notably, the token's burn rate skyrocketed on November 6.

In general, an increasing burn rate is an indicator of a deflationary asset. An increasing burn rate reduces market supply, which may positively impact the asset's price.

Expectations for LUNC.

We then examined other datasets to better understand what happens as LUNC's consumption rate increases.

AMBCrypto's analysis of Santiment data shows that LUNC's open contracts sharply declined after a significant increase on November 10.

This indicates a high likelihood that the current price trend may change.

However, some factors still favor the token. For instance, AMBCrypto's observation of Coinglass data shows that Terra Classic's long/short ratio has increased.

Thus, the market has more bullish positions than bearish ones, which can be interpreted as a bullish signal.

AMBCrypto subsequently looked at the daily chart of LUNC. We found that the Relative Strength Index (RSI) is moving upwards, indicating a significant inflow of funds.

Whenever this happens, it indicates that the price may continue to rise.

However, the price of Terra Classic has breached the upper band of the Bollinger Bands, suggesting that a price adjustment cannot be ruled out.