Wednesday, October 5, 2022

Terra (LUNA) on a Bullish Run, Here Are the Key Levels to Watch

LUNA, the native token of the Terra blockchain ecosystem is seeing a very bullish run today, as it decouples from the broader uncertainty of the downtrend in the crypto industry. At the time of writing, the coin is changing hands at $98.18, up 2.14% in the past 24 hours. 

LUNA is known for its very distinct price action which pushed it to attain an All-Time High (ATH) of $119.18, a little more than 2 weeks ago. The Terra ecosystem has a number of good fundamentals that are impacting the general outlook of the LUNA tokens. Terraform Labs, the blockchain startup in charge of the Terra protocol recently donated 10 million LUNA Tokens worth $880 million at the time to the Luna Foundation Guard, the outfit in charge of building the reserve for the TerraUSD (TUSD) stablecoin.

The donation which was termed a gift is a showcase of the general liquidity and health of the Terra ecosystem, a factor that is resounding to investors that are in for the long-term ride.

Sustainability of the LUNA Price Run

According to the LUNA/USD trading pair on the daily chart as seen on TradingView, LUNA has broken past a number of resistances since its price bottomed out at $75.50 on April 18. From that time till the time of writing, LUNA has breached the major psychological levels at $80, $85, $90, and $95 respectively.

LUNA/USD Daily Chart. Image Source: TradingView

With firm support formed at $96.50, the concern of a sustainable uptrend by a continuous bull action is now under consideration more than ever. From the indications of the ongoing run, the bears may set their claws on LUNA to give it a mild bearish correction in the near term, and should they succeed, a major pullback may be experienced at the $100 price mark.

Despite the positive outlook as shown by the 9 Day Moving Average and the Moving Average Convergence Divergence, the next levels to watch for both the bull run and the bearish slump will be more determined by the concerted efforts to keep the prices afloat around the $95 to $98 range for the next couple of days.

Godfrey Benjamin
I'm just a nerd who wants the world to know about the unique capabilities of blockchain and digital currencies

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