Terra (LUNA) scores 10th position; What’s next?
Terra (LUNA) exhibited an incredible rally this month. As large-cap coins took a massive tumble this weekend, LUNA emerged as one of the few alts that managed to post notable recovery even as the broader market flashed red.
LUNA is currently trading at $65.43 after depreciating by 12.4% over time past 24 hours. Despite the wider market sell-off, it has managed to rake in weekly gains of over 35%. As a result LUNA entered the top 10 in the leaderboard for the first time after smashing past large-cap cryptos such as Dogecoin (DOGE) and Avalanche (AVAX). With the LUNA’s market cap now standing at $24.43 billion while recording a 24-hour trading volume of $4.34 billion.
Terra (LUNA) Daily chart:
The trading volume on the daily chart is yet to surge levels last seen during May 2021, but moderate figures continued to cushion the overall uptrend.
- Awesome Oscillator- AO depicted a strong bullish momentum as the price of the crypto recently hit an all-time high.
- MACD- After a bullish crossover on the 28th of November, MACD has stayed optimistic exhibiting more upside potential.
- Bollinger Bands- As illustrated by the BB, LUNA market is highly volatile.
- Parabolic SAR- Since the dotted line is cruising above the price candles, it depicts a bearish movement.
- Relative Strength Index- RSI bounced back from the over-bought zone. At a reading above 62, the indicator demonstrated buyers dominance in the LUNA market.
In a nutshell, Terra’s daily price analysis indicated a bullish phase.
Since trading at $0.647 in the beginning of the year, LUNA has experienced an astonishing 10,008% rise so far. Owing to the bull run, the crypto-asset surged to its first-known peak of $21.98 on the 20th of March this year .
After a major pullback, it bounced back substantially around August. Since then, LUNA has maintained a steady upward trend with several higher highs and ultimately establishing an ATH earlier this month.
What’s catalyzing LUNA’s explosive growth?
The major factor catapulting LUNA to this new height is the algorithmically stablecoin TerraUSD (UST). Terra (Luna) is being branded as the layer 1 instead of being known as just an Ethereum app. Zack Guzman, a crypto analyst explained that the expedient rise of the token is due to its coveted Columbus 5 upgrade.
LUNA is being burned at a rate of 4x. This has made the asset deflationary. It is more likely to rise in price as long as market players adopt UST as their choice of stablecoin.