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This week, Terra’s native token LUNA has been one of the closely watched cryptocurrencies in the market.
The crypto token touched a peak of $101.59 on March 10, eclipsing the December high when it grazed $100. LUNA retreated shortly after to $88 before seeing more losses and eventually finding support above $83 a week later. Since March 18, market data shows, the pair has printed a series of rises and dips, staying in the $88 to $96 range.
New all-time highs
In the last 24 hours, the token has made a series of record highs following a sharp rise from an intraday low of $97.18. LUNA price chart shows the token surged from $97.22 today at 02:29 AM (UTC +3) to $106.11 at 07:44 AM (UTC +3) before retreating to around $103. A second mini-rally pushed the token above the morning summit to $107.31 and then later to the current record high of $109.67 as per CoinMarketCap data.
The coin’s upsurge to a new peak has been fueled by bullish news within the Terra ecosystem. Terra yesterday made a series of Bitcoin purchases – worth $135 million (2,830 coins), adding to its Bitcoin treasury that has swelled by more than $1 billion in the last three months,
A wallet address that has been confirmed to be under the custody of Luna Foundation Guard – the non-profit organization dedicated to the Terra ecosystem – holds roughly 27,785 BTC translating to about $1.32 billion at the current $47,480 unit price. The foundation aims to build a $3 billion Bitcoin reserve in the coming months with a long-term ultimate target pool worth $10 billion.
The latest accumulation has renewed confidence in the market and helped allay concerns arising from the Federal Reserve’s interest rate hike and war in Ukraine. The positive sentiment has contributed to the broader rally that has seen Bitcoin and Ethereum soar to multi-month highs. The Bitcoin buy has also reversed the losses recorded in the first two months of 2022 and pushed the price of LUNA to unprecedented heights.
A correction on the way?
LUNA’s price rally to a new peak has been accompanied by a series of forecasts on where the token will be trading.
CoinTelegraph today shared an analysis piece suggesting that the token might shed half of its value in the coming weeks.
“From a technical perspective, LUNA faces the prospects of undergoing a 50% price correction in the coming weeks, though this may not necessarily hurt the bullish long-term outlook.”
Other analysts predict that LUNA may make headway towards $122, with the only deterrence being profit-taking action.
“[…] The recent upswing appears to result from the break of a symmetrical triangle* that LUNA has been contained in since late February. This consolidation pattern* estimates that LUNA could continue to surge by another 14% to hit a target of $122.”
* The triangle and consolidation pattern can be viewed on the linked post
According to the latter analysis, if traders move to take profits at the current range, the token will correct and seek support around $99 before surging again.
“LUNA is currently showing a sell signal on its lower timeframes that could lead to a spike in profit-taking that sends it back to $99 before the uptrend resumes.”
In the short-term, though, LUNA will likely attempt to breach $114, which is the immediate major price level. This thesis is further validated by the token’s trading activity over the last few hours – predominantly a series of minor hikes followed by mild corrections.
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.