Terra (LUNA) hit an all-time high at $109 amid its latest developments. Market sentiment also continues to remain positive over the past 24 hours, with Bitcoin trading near $48,000. LUNA happens to be one of Terra’s native tokens, the Terra network helps build custom blockchains and decentralized applications on its network.
Recently, Luna Foundation Group (LFG), a non-profit organization based in Singapore, purchased $3 billion worth of Bitcoin, which would act as an additional layer of security for Terra’s decentralized stablecoin, UST. Within the last week itself, Terra (LUNA) gained 12% upside, and in the past 24 hours, the coin broke above its resistance mark of $108.
Terra Price Analysis: Four-Hour Chart
Terra (LUNA) was trading hands at $108.47 after hitting an all-time high at $109 just 24 hours ago. The coin’s immediate resistance stood at $110 and then $112, respectively. In the event of a pullback, prices could fall to trade near $103, $100 and then $95 respectively.
Over the past month, the altcoin has yielded an 18% return on investment. Terra (LUNA) trading volume has been increasing over the past few trading sessions, its previous session was seen closing in green signifying bullish momentum in the market. It also signals that buyers have overtaken sellers at the time of writing.
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Technical analysis
LUNA has grown exponentially over the past month and technical data continues to point to a bullish trend in the market. Whether in the immediate trading sessions LUNA would see a correction is uncertain. As the coin hit an all-time high, it exhibited overbought tendencies, as seen in the relative strength index.
At the time of writing, the RSI has returned from the 75 mark but is still near the overvalued and overbought territory. This signaled a slight drop in buying pressure over the past few trading sessions, if the coin continues to experience the same kind of buying strength, it could once again attempt to trade near the $109 price. then $110.
Chaikin Money Flow was also in line with the relative strength index as capital inflows were quite strong. An excessive amount of capital inflows reflected a bullish trend in the charts.
LUNA had been rising over the past week and a half and price momentum continued to side with the bulls. On the MACD, meaning current price momentum, LUNA has undergone a bullish cross over the past few trading sessions. MACD also resonated with the other major indicators and continued to show a bullish trend.
After the bullish divergence, MACD had continued to show green histograms, however, at press time, these green histograms were seen declining. It is, however, too early to tell if LUNA would show a price decline according to the MACD reading.
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