Connect with us

Terra News

LUNA Leads Altcoins in Fresh Midweek Rally as Total Crypto Liquidations Cross $200 Million

mm

Published

 on

Securities.io is committed to rigorous editorial standards. We may receive compensation when you click on links to products we review. Please view our affiliate disclosure. Trading involves risk which may result in the loss of capital.

News of the inadvertently published Treasury response to Biden’s crypto directive provided the impetus for the crypto market to rebound late yesterday. The surge continued overnight, with most cryptocurrencies seeing decent price gains during the European morning hours.

Altcoin markets rally as investors and traders gain confidence

The combined cryptocurrency market capital surged from $1.723 trillion (01:00 GMT+3) to $1.852 trillion (15:36 GMT+3) today.

Total market capital chart. Source: CoinMarketCap

Bitcoin price has, as of writing, moved by about 8.40% in the last 24 hours, placing the coin in a position to challenge 42K – a level it hasn’t revisited since last Thursday. The flagship crypto-asset set an intraday high of $42,352 earlier today as per CoinMarketCap data but has since retraced to just above $42,000.

Its rally, unsurprisingly, swayed altcoins with Terra (LUNA) among the standout crypto assets that have seen a dramatic price uptrend.

Terra (LUNA) brushes against $100 before retreating to $97

Terra’s LUNA token has seen an explosive run today. The native token on LUNA climbed from $79 yesterday to hit an intraday high (and weekly high) of $99.93 – a 26.5% price upswing.

LUNA/USD 3-month trading chart. Source: CoinMarketCap

Though the majority of the crypto tokens are trading in the green, none in the top 20 has posted double-digits. The only other major token with an equally large green candle is Near Protocol’s NEAR, ranked 22nd by CoinMarketCap in market capital.

LUNA/USD slightly grazed $100 on some exchanges, but the latest data indicates its momentum has cooled off as the token swings around $98.50. At its current price, the token is only 5.40% off its all-time high of $103.33. This is the closest it has come to eclipse the December peak since the start of the year.

Terra has now flipped Solana and Cardano to occupy seventh place following the rapid price rally. Its market capital of $35.785 billion as of writing also puts it within a distance of sixth-ranked XRP, which has an equivalent figure of $36.081 billion.

Ethereum and other top altcoins have risen as well

The premier altcoin Ethereum (ETH) has reclaimed $2,700 following a price surge of 5.54% in the last 24 hours. Despite the boost, Ether has struggled to overcome resistance at $2,760. The token briefly breached this level but quickly got rejected back to $2,735, where it is currently hovering.

ETH/USD 24-hr trading chart. Source: CoinMarketCap

Tenth-ranked Avalanche (AVAX) has accrued 9.07% gains in the same period and is now trading marginally above $78. Polygon (MATIC) and Solana (SOL) tokens have charted relatively smaller ascents. The former has cut above $1.50 on the back of a 4.12% boost. SOL/USD is still stuck below $88 despite seeing a 4.35% price surge on the day.

LUNA has the third-highest liquidation volume in the last 4 hours

Though the surge comes as a relief to many ailing crypto tokens, it has resulted in more than $135.40 million worth of orders being liquidated in the last 12 hours. Short trades have taken the biggest hit over the past 12 hours as they make up for the majority (84.61%) of liquidation. Coinglass data further shows that almost 50,000 individual trading accounts have been affected by the liquidation, bringing the 24 hr liquidation volume to $203.43 million.

The 12-hr time frame show Bitcoin futures account for the bulk of liquidation volume with $70.76 million worth of positions wiped out. Futures tracking LUNA have recorded the third-highest losses with $9.49 million wiped out, behind Ether’s $28.52 million worth of liquidated orders.

Liquidation Volmes. Source: CoinGlass

The current 24-hr liquidated volume, however, doesn’t come close to the highest 24-hr liquidation volume recorded this year. Early this year, on January 21st, almost $1 billion worth of leveraged positions were closed in a single day.

To learn more about Terra visit our Investing in Terra guide.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.

Advertiser Disclosure: Securities.io is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

Securities.io is not a registered broker, analyst, or investment advisor.