Terra’s LUNA is attempting a gradual recovery after a slight dip but remains in the green following the successful rollout of its latest network upgrade dubbed as Columbus-5, which brings key features of cross-chain interoperability to its blockchain. At the time of writing, LUNA/USD is trading around $37.26, after posting a modest gain of 7.5% through the month of September.

All You Need to Know About Columbus-5 Upgrade

The much awaited upgrade shutdown the previous blockchain and migrated the code to a new chain from the state of the last block. Columbus-5 is one of the most important network upgrades as it brings about an integration with Cosmos’s Inter-Blockchain Communication (IBC) protocol, which will allow interoperability between Terra and other IBC-compatible blockchain networks.

Another key update which occurred during the upgrade was the burning of LUNA tokens, which have also supported the rise in the token’s value from the supply side. To recollect, LUNA token ensures stability in the price of stablecoins such as UST on the Terra blockchain and are burned to balance the increase in supply of UST and generated when UST’s supply dips.

Bringing the power of cross-chain communication and interoperability to Terra, Columbus-5 will increase the adoption of its blockchain network among dApps. In addition, it will allow investors to easily transfer their holdings in other cryptocurrencies into LUNA and vice versa.

Upcoming Fundamental Developments

Terra’s LUNA could see its value and demand spike further in the coming weeks when the blockchain gets fully connected to the Wormhole V2 bridge, which will allow seamless movement of its tokens to Ethereum and Solana, and vice versa. While Wormhole V2 is already live and supports the three blockchain ecosystems, its developers were waiting for the Columbus-5 upgrade to launch UI support for Terra, which is expected soon.

On the fundamentals front, LUNA could enjoy some support from digital money platform Uphold listing it on its exchange. This development will allow its users to buy, hold, sell and send LUNA on its platform and spur investor interest in the cryptocurrency which currently ranks 11th on the basis of its market cap.

Technical Analysis of Terra (LUNA)

Terra’s LUNA has strengthened by over 10,000% over the past one year, becoming one of the biggest gainers in the wider crypto sector. On the 4-hour chart of LUNA/USD, moving averages and the MACD are exhibiting a strong bullish bias. Although, other technical indicators Stochastic and momentum are signaling some selling interest as well.

LUNA’s price is holding comfortably above the pivot point at $33.26 and increased buying pressure can take it higher towards the test of the first resistance level at $42.89. A break above this can take LUNA beyond the $50 mark until buyers encounter resistance again at $51.04.