Assessing Terra’s (LUNA) Chances of Hitting $110 Again
Key Insights:
LUNA rallied by over 16% in the last week.
Terra’s strong fundamentals backed LUNA’s rally.
Nonetheless, the price rally still lacks retail euphoria.
In the last couple of days, most of the top cryptocurrencies, including BTC, ETH, SOL, ADA, and LUNA, gained prices as the global crypto market cap stood at $1.95 trillion.
The wave of bullishness in the market also led to a 59.61% rise in the total crypto market volume over the last 24 hours, pushing it to $96.83 billion. While most of the coins presented positive fundamentals, many retail eyes were set on Ethereum rival Terra’s LUNA.
Terra’s Tokenomics for the Win
Terra’s advanced tokenomics, healthy ecosystem, and retail-backed rallies managed to push the token into the top ten coins by market cap over the last few months. At the time of writing, LUNA outperformed all the other top 10 tokens on the weekly chart noting over 16% gains in 7 days.
However, apart from larger market gains, internal factors like the rise of UST’s market cap have also contributed to LUNA’s healthy growth over time. Terra’s stablecoin UST recently flipped BUSD to become the third biggest stablecoin in the market.
UST also achieved the milestone of becoming the first decentralized stablecoin to reach the top three. UST’s growing adoption and rise in market cap have aided LUNA’s bullish momentum.
Furthermore, UST transfers have witnessed a steady rise, with daily transaction volumes oscillating between $200 to $400 million UST.
That, however, isn’t all; Terra has also established itself as the second biggest DeFi chain after Ethereum. Terra’s total value locked (TVL) at press time was nearing an all-time high, standing at $30.07 billion, just $1 billion short of ATH levels.
Heading for Higher Gains?
On April 6, LUNA’s price fell from the high of $120 and began its downside correction towards the under $100 zone. While on its way down, the token attempted recovery it was met with rejection around the $110 and $105 levels.
After spending over 10 days in the below $100 zone, LUNA has headed for gains once again. At press time, the coin traded at $98.39, noting 2.38% daily and 16.94% weekly gains.
LUNA’s price formed a local low near $77, which saw some rebound as bulls pushed the price above the $80 zone.
For now, if LUNA’s price is established above the $98.9 resistance, a good retail push can send the token to the $110 mark. In fact, as highlighted in a recent article, a push from bulls could see the price rise towards the $120 level.
While the recent pump has garnered decent social attention for LUNA, a true retail euphoria is still lacking. Despite the recent gains, trade volumes for LUNA have flattened out on a daily chart over the last three days.
If LUNA’s price fails to sustain above the $100 level, a pullback to the support zone around the $89 mark could be expected.
This article was originally posted on FX Empire
