Even though the crypto market is going through somewhat of a lull lately, one hot cryptocurrency stands out lately – stablecoin Terra (LUNA). We recently featured it among the top 10 DeFi cryptocurrencies in terms of market cap, and now, we’ll take a deeper look at its promising potential.

A blockchain project developed by Singapore based Terraform Labs, Terra is a stablecoin that powers the company’s digital currencies and apps, such as the Terra US Dollar or UST, which is pegged to the US dollar. By doing this, the company aims to reduce the notorious levels of volatility attributed to cryptocurrencies.

What makes this crypto worth watching is the recent news that its firm has received $150 million in funding from leading investors worldwide, including Arrington XRP, Pantera Capital and Galaxy Digital. The funds will enable Terra’s DeFi Ecosystem Fund to sponsor the development of new projects on its blockchain network.

Terra’s native token LUNA has seen its market cap soar from $300 million at the beginning of this year to over $2.8 billion till date. Increased growth and adoption of Terra’s technology will send the value of LUNA higher in the coming months, and the future does look bright, despite the bearish mood towards cryptocurrencies in general lately.

So far, the company has seen increased acceptance among South Korean merchants, helping them drastically cut down settlement time. Terra also powers other popular apps like Chai – a payment app and Mirror – a trading app growing its user base beyond South Korea and into China and Thailand.

Key Levels to Watch

On the 4-hour of LUNA/USD, moving averages as well as leading technical indicators MACD and momentum are suggesting a strong bullish bias towards the crypto pair at the moment. At $6.98 currently, LUNA’s price is holding just under the pivot point at $7.00 and should cross the level soon.

If it does, we can see buyers face some resistance at around $7.96 and then again at $9.44 before Terra can break above the key $10 level. On the other hand, if the sentiment turns bearish, sellers could take LUNA down to test the immediate support level at $5.60.