In a previous Luna Price Prediction article, we tackled what the Terra blockchain is and analyzed the LUNA token. We also spoke about important price areas that can be reached. Today, LUNA prices reached exactly all the previously outlined areas. Our suggested trade setup is deep in the green and already made more than 34% return. What’s next for LUNA? Will LUNA price reach $100? Let’s analyze as professional traders do 😉
Why is LUNA Good to Buy?
Terra currently has four tradeable tokens on its blockchain. LUNA gives staking rights and is used in the protocol’s stability mechanism. Those four stablecoins are as follows:
- TerraUSD (UST): pegged to the USD Dollar
- TerraKRW (KRT): pegged to the South Korean Won
- TerraMNT (MNT): pegged to the Mongolian Tugrik
- TerraSDR (SDT): pegged to the International Monetary Fund’s SDR unit of account (Special Drawing Right, which is a basket of Foreign Exchange currencies held by the IMF)
The presence of SDR in the stablecoins offering is a solid must-have, as it represents a very stable currency. Therefore, they plan to add many other currencies in the future such as Euro, Yuan, and Yen pegged tokens. Terra stakers have the ability to vote and recommend new Terra currencies and disapprove existing Terra currencies. With the introduction of new currencies and a cross-border expansion, Terra presents a very interesting opportunity with a solid whitepaper.
LUNA Price was always on an Uptrend
If we take a close look at LUNA’s price action, we can clearly see how prices were always on an uptrend. Despite the heavy crypto market crash that occurred back in December 2021, LUNA seemed to disengage from the crypto market. It is very rare to find an altcoin that doesn’t follow the general trend of the cryptocurrency market. Terra LUNA is proving to be a good hedge against the crypto market, specifically Bitcoin’s heavy price adjustments.
LUNA did in fact retrace more than 50% earlier this year. But that was part of a price adjustment to return back to the average uptrend line visible in figure 1 above.
Will LUNA reach $100?
Naturally, after such a rally, the price of LUNA should reach the psychological price of $100. On the other hand, this should not be a sign for people to buy LUNA at that price. Looking at figure 2 below, we can clearly see how prices are a bit overbought. It would be risky to buy LUNA at such a high price, especially since the previous week was mostly bullish without any sign of a correction.
Should you Buy LUNA Today?
Price breathers are very important for any asset, especially for cryptos. If prices keep ballooning higher, you should expect a harsh correction lower. For the case of LUNA, in figure 3 we can expect prices to adjust towards the $80 psychological price as a first step as prices did consolidate around that area previously.
As a worst-case scenario, we can expect a harsher adjustment that would erase most gains. This adjustment might reach the upper parallel channel line.
Once the adjustment happens, it would be a good idea to buy LUNA around those psychological price areas. We remain to see what happens to LUNA prices next, as a break in the $110 price might higher those above-mentioned levels. That’s why it is always important to follow the markets.
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