The price of LUNA has a bullish trend, which suggests that the price can soon break through the top of the ascending channel. The daily candlestick chart shows that it could exceed the immediate resistance close to USD 43.56.
Amid a generalized rally in the cryptocurrency market, the LUNA token recently resumed its short-term upward trend. The following analysis will help better understand this crypto asset and predict what could happen in the remainder of 2021.
LUNA is currently trading at USD 55.67 and has accumulated a 15.4% profit in the last 24 hours. Its trading volume is above USD 1.7 billion, and its market capitalization is about USD 21.7 billion. This crypto asset occupies the 13th position in the ranking, according to CoinGecko.
Terra is a blockchain protocol that provides stablecoins linked to fiat currencies to supply the global payment system. That platform can combine the resistance to censorship that Bitcoin offers, together with fast and affordable deals.
The LUNA token allows stabilizing the stablecoins of the protocol, and the holders of the token can vote and submit proposals for governance on the network.
As a consequence of its market capitalization, the platform has grown significantly in the user base. In 2021, the Terra token has increased by more than 4,200%, leading to an upward trend still standing.
Technical Analysis of the Price of LUNA
The weekly LUNA/USDT chart reveals that the price has remained locked in a narrow and little volatile ascending channel.
The trend is bullish, suggesting that the price can soon break through the top of that channel, thus accumulating profits faster.
There was a pullback in the price towards the 50% Fibonacci at the end of August. That could mean it has reached the bottom of the correction, and momentum in the search for USD 70.89 (61.8% Fibo) has started.
If it loses the support at USD 43.51, which is unlikely, the Terra token could be in trouble as the year ends. The crypto asset will probably attempt to look for a significant support zone around USD 25.
Daily Candlestick Chart of the Price of LUNA
The daily candlestick chart shows an excellent signal due to the recent accumulated profits. The price of LUNA could break through the immediate resistance close to USD 43.56.
The value of the Terra token has just resumed its short-term upward trend and may give optimistic news as the year ends.
There is a minor pullback in progress, which could give way to new bullish momentum in the short term. The closest target for the price of LUNA is USD 54.95.
At the time of writing this article, the price of this token reached a new all-time of USD 55.95. It has grown by 35.3% in the past week, proving the growing interest from investors.
LUNA is a few steps below Shiba Inu (SHIB) and Dogecoin (DOGE), remaining among the leading crypto assets. It is a matter of time before seeing them hit new all-time highs due to their increasing popularity.
By Alexander Salazar
