LUNA[1] has been one of the cryptocurrencies that registered a strong recovery post the broader market slump. Moreover, it has had impressive developments thanks to the increasing popularity of its US dollar-pegged stablecoin – the UST[2]. Given the rise, specific traders charted a technical setup that preceded an 80% price rally in the Terra (LUNA) market.
Interestingly, this bullish setup that appeared in August 2021 is live again.
Lift-off soon?
An anonymous trader incorporated Moving Average Convergence Divergence (MACD[3]) to analyze LUNA’s following possible movements. The weekly chart below showed an exciting crossover that could trigger LUNA’s growth above the $100 mark.
Another user replying on the same thread opined that LUNA could achieve the $180 mark following the same trend. In the graph attached above, a MACD crossover gave a bullish signal when the MACD (see the blue line in the chart below) rose above the signal line (see the yellow line).
Notably, LUNA’s price surged by nearly 90% after bottoming out at $47.25 on 20 February, now eyed a run-up above $100. Could it attain this mark?
Well. it certainly wasn’t a far-fetched dream as at press time, it traded around the $94 mark. Overall, the surge could be because of the massive amount of BTC bought to help support stablecoin Terra USD[4] or UST.
Here, the Luna Foundation Guard[5] (LFG) raised[6] $2.2 billion for its Bitcoin reserve and hoped to hit $3 billion in the short term. This acquisition would make up one leg of Terra’s long-term plans of amassing $10 billion of Bitcoin reserve for UST.
Rising optimism
Data from Messari[7] found both circulating market capitalization and market cap dominance steadily hiked across the board.
Source: Messari
In addition, SmartStake.io
