Terra (LUNA) has been on hearth in December, bucking the current adverse broad market danger tendencies suffering from pandemic and financial coverage fears. What’s driving LUNA to all-time highs and may the social gathering maintain going?
Nearly two weeks in the past, we highlighted a symmetrical triangle formation on Terra (LUNA), a sample that would result in each bullish and bearish worth motion relying on how the broad market and Terra’s narrative performed out. It appears like that sample result in a draw back break as LUNA moved with the broad market decrease due to rising Omicron variant fears.
This was one of many situations we mentioned and if it did play out, then $55.00 was the extent watch (the earlier all-time excessive space struck in early November) as any draw back strikes would probably be held by merchants and buyers on the lookout for dips to play the robust fundamental story behind Terra’s progress.
It appears like that situation performed out as anticipated as $55 held twice final week earlier than LUNA/USD shot up larger with barely a hiccup these previous few buying and selling classes. This was one thing to look at because the broad crypto area lagged whereas Terra continued to make new all-time highs, gaining +65% over the previous seven days.
It seems that with this sort of worth motion and as Terra’s ecosystem hits new milestones (e.g., UST overtakes DAI because the no. Four stablecoin by marketcap, Terra turns into the second largest blockchain by whole worth locked behind Ethereum, LUNA turns into a prime 10 crypto asset by marketcap), the world is now beginning to take discover of Terra. In accordance with the crypto social intelligence web site Lunarcrush.com, Terra jumped to the highest 20 tokens in phrases social quantity and prime 10 in social engagement.
With the narrative of lowering provide (the group continues to be burning LUNA to mint UST, and LUNA provide being locked up in new protocols), a quick rising ecosystem of modern DeFi apps, and extra chatter on LUNA on social media, the rise in worth to now above $85 will not be surprising, and the chances are fairly good the market will stay bullish with all different issues being equal.
In fact, LUNA doesn’t commerce in a vacuum (or does it?), so if there are any dips because of exogenous components, then the earlier damaged excessive round $78.50 all the way down to $70.00 is the world to be careful for any potential assist sample formations earlier than contemplating new or extra longs.
A break under that space would probably attract extra promoting relying on the catalyst, and if it’s a fairly robust catalyst, a retest of the $55.00 – $60.00 earlier assist space will not be out of the query given the present volatility ranges (round $9 each day Average True Range).
If there aren’t any dips, then we might see $100 LUNA very quickly if momentum holds, at which level it’s probably some revenue taking might happen. One thing to contemplate if managing a LUNA place with a shorter-term mindset.
What do you all assume? Will we see $100 LUNA earlier than the top of the 12 months or might we see a prime round $90? Any potential adverse catalysts forward that we missed? Let me know within the feedback part under!