Join Our Telegram channel to stay up to date on breaking news coverage
Terra LUNA price has been sealed in a downtrend since mid-January. The Layer 1 token trades 66% below its January high above $2.5. At the time of writing, LUNA trades at $0.86 with a bullish bias. It is down 1.3% in the last 24 hours and 5.45% over the last week, according to data from CoinMarketCap.
The native token of the troubled Terra ecosystem has been struggling to regain the glory it enjoyed before the collapse of its sister token TerraUSD (UST) in May last year. Despite the positive fundamentals arising from the committed Terra developers, LUNA price still faces a downside risk.
The latest news from the Terra Ecosystem has to do with the changes on the Terra Station, a non-custodial wallet that is native to the project. The wallet has made several changes to its user interface by inserting the “moon” into its background.
The team revealed this development in a May 26 Twitter post saying, “Inspired by $LUNA, our new theme embodies the limitless potential of the cosmic interchain and our shared ambition for the future.”
1/ ? Dive into the vast world of Web3 with a radiant, lunar glow guiding your way with Station’s new Moon theme, now available on Chrome and Firefox extensions and web and desktop apps! ? pic.twitter.com/2y8sxpkP1c
— Station ? (@StationWallet) May 26, 2023
The Terra community hopes that this and many other developments to come will continue to showcase the potential of the project fueling their desire to see it shine as it did at its peak.
Terra LUNA Price Could Still Recover From The Current Levels
The LUNA price has been suppressed by the January descending trendline, preventing a clear upward breakout for the altcoin. The price confirmed a descending triangle chart pattern, according to a past analysis, that projected LUNA’s crash to $0.750.
However, the token has held above the $0.860 support level for the past five days. Bulls were required to aggressively defend this level to avoid further losses.
The balancing of the Relative Strength Index (RSI) just above the oversold region at 30 suggested that the sellers were getting weaker. This pointed to a possible trend reversal in the near term.
Additionally, the Moving Average Convergence Divergence (MACD) indicator was moving upward. Note that this trend-following indicator sent a call to buy LUNA on May 20 when the 12-day Exponential Moving Average (EMA) crossed above the 26-day EMA. This buy signal was still in play, an indication that the market conditions still favored the upside.
Therefore, a daily candlestick close above the triangle’s resistance line at $0.90 would confirm a bullish breakout from the triangle toward the 50-day Simple Moving Average (SMA) around the $1.11 area.
Overcoming this barrier could see LUNA price rise to tag the 100-day SMA at $1.20 and later the 200-day SMA at $1.485, before revisiting the $2.04 range high. This would represent a 137% uptick from the current price.
LUNA/USD Daily Chart
On the downside, Terra LUNA was at risk of further losses. Note that both the RSI and the MACD were positioned in the negative region, suggesting that there was still more room for the downside.
Therefore, increased selling from the current level could set the price on a freefall to complete the triangle’s target at $0.750. This would represent a 13% decline from the current levels.
Can LUNA Price Reach $10K?
Terra LUNA price enjoys the support of two top-tier crypto exchanges: KuCoin and Binance. With such backing, the ecosystem has the potential to remain competitive.
An explosion in LUNA price is a lot to hope for, considering the murky past associated with the project’s stablecoin UST and its founder Do Kwon. Just last week, a Montenegro court denied Do Kwon bail, meaning he will remain incarcerated until his case is heard and determined.
LUNA’s price movement is further suppressed by its large token supply. It has a total token supply of over $1 billion, meaning that the community must consider massively reducing the supply if they would like to see LUNA sustain a rally toward the ambitious $10 target.
According to data from DeFiLlama, the ecosystem has been witnessing a massive slump in the Total Value Locked (TVL). The chart below shows that Terra’s TLV has been consistently declining since February.
Terra Total Value Locked
Terra’s TVL currently stands at $10.52 million, implying that the adoption of the protocol has been significantly going down.
Related News:
- 10+ Best New Cryptocurrency Coins to Buy
- Green Web3 Project Ecoterra Gains Momentum with Major Brand Collaborations, Including Coca-Cola, in its Recycle-to-Earn Ecosystem – Total Funding Reaches $4.4 Million
- Gemini crypto exchange chooses Ireland as its European headquarters.
Most Searched Crypto Launch - Pepe Unchained
- Layer 2 Meme Coin Ecosystem
- Featured in Cointelegraph
- SolidProof & Coinsult Audited
- Staking Rewards - pepeunchained.com
- $10+ Million Raised at ICO - Ends Soon
Join Our Telegram channel to stay up to date on breaking news coverage
