Terra’s LUNA is off to a bullish start early on Wednesday, making the most of the bullish sentiment towards the wider crypto sector and powered by strong fundamentals. At the time of writing, LUNA/USD is trading at around $37.94.

One of the most interesting developments surrounding the 12th largest cryptocurrency is based on interoperability. Communication bridge Wormhole announced a user interface support for the Terra blockchain, allowing it to be connected to other leading networks such as Solana, Ethereum and Binance Smart Chain.

This is a significant development from a DeFi perspective as it can allow users to transfer tokens from different blockchains to Terra’s ecosystem and vice versa. With no need to double wrap Terra tokens, the Wormhole support will allow for greater adoption of Terra’s stablecoins which in turn will increase the value of LUNA – the blockchain’s native token used for its governance and price stability mechanisms.

Wormhole Support Gives Terra an Interoperability Boost

The interoperability protocol will allow tokens, NFTs and price data to flow from Terra to other supported blockchains. The latest upgrade lets Terra’s stablecoin UST and LUNA be used on the Solana network without double wrapping, increasing its usability and efficiency within the blockchain that touts high speed transactions and is fast becoming an attractive destination for DeFi projects.

In addition to Wormhole, Terra’s ecosystem will get another boost in terms of interoperability with the IBC protocol going live soon. Following the successful rollout of the network’s major upgrade Columbus-5 last month, the Terra network is set to witness rapid expansion in the coming months. According to Terra’s developers, over 160 projects are scheduled to launch in the coming months, which will drive an immense boost to LUNA’s utility and value.

LUNA/USD Technical Analysis

Technical analysis of the 4-hour chart of LUNA/USD suggests a bullish bias among most moving averages and the MACD. However, the 100 EMA (blue ) and the momentum indicator are suggesting some selling interest as well.

Terra’s LUNA is sitting just above the pivot point at $37.29 and we need to pay close attention to the price action soon. An increase in selling pressure can see the PP give way and the price falling lower towards testing the support at $33.82. On the other hand, more buyers entering the market can bolster its uptrend and take LUNA higher until they encounter resistance at $39.62.