Terra LUNA Makes New ATH at $110, Despite the Slow Crypto Market
Skerdian Meta • 2 min read
LUNA coin which is one of the two native tokens of the Terra network, has been the strongest cryptocurrency among the main ones in recent months, as it keeps printing new all-time highs. Terra LUNA is a network that allows developers to create custom blockchains and build their own decentralized applications on this network. The Luna Foundation Guard’s (LFG) plans to increase its Bitcoin (BTC) reserves, first announcing increasing them by $1 billion and then adjusted plans for a $10 billion BTC reserve.
Bitcoin wallets associated with LFG saw an inflow of 2,830 BTC which is worth around $130 million on Monday. The influx occurred as LFGs started accumulating BTC, which will be used as collateral to “provide deep liquidity at a discount when the UST peg, which is Terra’s stablecoin, is under pressure.” If Terra keeps accumulating Bitcoin as it has promised, then that could lead to an increase in demand for UST, which means that more LUNA tokens will be burnt and the price will keep rising.
Terra Daily Chart – LUNA Breaks the Resistance Around $103
The 20 SMA held as support on the daily chart
LUNA/USD was pushing higher in December as cryptocurrencies were retreating, reaching $103. It pulled back in January after the Wonderland controversy, which set the DeFi market back, but the total value locked (TVL) has reached $29.3 billion, holding a 12.8% share of the market. The 200 SMA (purple) held as sup[oprt on the daily chart, rejecting sellers LUNA twice and the bullish trend resumed again in February, printing a new high at $104 early this month.
The sentiment in cryptocurrencies has improved in the last two weeks, but they haven’t resumed the larger bullish trend yet, while Terra LUNA keeps making record highs, breaking above the recent high and reaching $110 yesterday. So, this crypto coin remains extremely bullish and i am beating myself for not buying at the 200 SMA, although we are following this token for a possible retreat lower.