Terra LUNA Turns Bullish As LUNA/USD Bounce 25% Higher This Week
Cryptocurrencies have been bearish for more than a month, accelerating the decline earlier this month, as Bitcoin fell to $42,000 during that crash. Although cryptos have been showing signs recently that they want to turn bullish. The decline slowed considerably this week and today the market is having a bullish day. Some cryptos like Terra LUNA are already turning bullish, so let’s have a look at this digital currency.
Terra LUNA Daily Chart Analysis – Bouncing Off the 20 SMA
Terra LUNA coin has been really bullish since August, increasing from around $5 back then to $80 earlier this month. Even during the bearish period of the last month LUNA coin has remained bullish. Terra’s network supports stablecoins pegged against fiat currencies, such as UST coin and uses its coin LUNA to maintain the price stability of these stablecoins.
Terra LUNA keeps making higher lows
This has been keeping LUNA in demand, that’s why it avoided the crash early this month, still remaining bullish, while the market has been bearish for more than a month. Terra’s community passed the proposal to bur around $4-S5 billion worth of LNA coins, depending on the price, which has been a strong factor in this bullish run, while the higher demand for the UST stablecoins has ensured a faster burn rate for LUNA tokens, keeping the demand high for LUNA coins.
Terra LUNA Attracting Large Funds
Chiron which is a venture capital firm raised a Terra LUNA fund worth $50 million which will back projects on the Terra blockchain, to boost “decentralized finance applications, metaverse-linked non-fungible token (NFT) platforms etc”. Terra’s growing ecosystem attracted a $150 million decentralized finance (DeFi) fund in July, so money is pouring in.
Besides what we mentioned above, Terra’s developing team announced a new network upgrade proposal, which has also helped keep the demand up. Different countries, such as the US, are heading toward regulating the crypto market, which would require crypto investors to report their holdings and investments in digital assets. But, Terra is ahead of things, after the proposal to overhaul Terra’s TrackTerra tax and reporting app.
This can make it easier for the token holders to export their transaction history to popular tax software programs for easier reporting of their crypto activities. The on-chain activity on the blockchain which has increased as a result of its DeFi efforts, is also keeping LUNA bullish and now LUNA/USD has gained around $25% after the 20 SMA held as support on the daily chart.
Terra Luna Coin Live Chart
[[LUNA-graph]]
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