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Price Analysis

Terra (LUNA) Becomes the 2nd Largest DeFi Network After Making All Times High at $97

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When it comes to assets locked in DeFi protocols, Terra has surpassed $18 billion in value, and the LUNA token has reached new all-time highs. Overtaking Binance Smart Chain, Terra has risen to become the second-largest decentralized exchange network (DeFi).

LUNA, which may be one of the best-performing assets in 2021, has been trending in the opposite direction of the market for the past two weeks. In the meantime, while Bitcoin, Ethereum, and other major cryptocurrencies have remained rangebound, the Terra ecosystem’s native token has re-entered previously unexplored territory.

Key Takeaways (LUNA)

  • Terra, according to NewsBTC, has made a number of enhancements to its mainnet in recent months. Colombus-5, Wormhole v2, and an Inter-Blockchain Communication (IBC) protocol were among the protocols tested.
  • LUNA’s rally could be sparked by the first of these upgrades, which could be the fuel that ignited the rally by incorporating a burning mechanism into its network. As a result of this upgrade, LUNA has effectively been transformed into a deflationary asset that will continue to see buying pressure in the foreseeable future.
  • As the founder of the Korean blockchain project Terra, Do Kwon is optimistic about the demand for his stablecoin that is pegged to the US dollar increasing “rapidly” in the first half of 2022 before reaching an “inflection point” around this time next year.
  • LUNAtics has received 1.2% of the $XDEFI tokens distributed by XDEFI Wallet through Pylon Pools. The proceeds from the $XDEFI Pylon Pools will be distributed to Terra ecosystem grants and charitable organizations, with 60% going to Terra.

Price Analysis of LUNA

Fear & Greed Index: 45, Fear

All-time High: $97

7d change: 67.30%

Market Cap: $35,847,368,804

Circulation Supply: 369,704,169 LUNA

Total Supply: 842,212,005 LUNA

Daily Chart Breakdown of LUNA

LUNA Daily Price Analysis

Source: TradingView

After breaking above $77 and the expanding wedge structure, the market had an aggressive rally in the last couple of days. We hope to see the test or break above the psychological level of $100 soon.

4 Hour Chart Breakdown of LUNA

LUNA 4h Price Analysis

Source: TradingView

If the bears can overcome the market around $100 for a correction, a pullback towards $77 will be imminent. Otherwise, a break and daily close above the $100 mark might result in an upward move again.

1 Hour Chart Breakdown of LUNA

LUNA 1h Price Analysis

Source: TradingView

Source: TradingView

LUNA market is under fear now. On the hourly chart, we see a huge in the past 3 days. Now, we have to wait and see what happens around $100.

Final Thoughts

At the time of writing, the LUNA price is $97.53 and on no. 9 on the top 10 cryptocurrencies by market cap. Yet, there are no signs of this rally slowing down before $100.

I have been in financial markets since 2013. With a diverse experience of different asset classes, I trade and create educational content for Crypto, Forex and Stock Markets.

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