LUNA exhibits a bright outlook, with market players expecting Terra blockchain-based projects to ensure massive support for LUNA price.
- Terra’s LUNA gained 10.2% over the past seven days, closing the week near $89.27 before exploding to$90 early today.
- The upward move emerged even with the broad market sustaining a bloodbath week.
- Technical indicators show an impending move, with 50-, 100- and 200-day Exponential Moving Averages converging.
Terra’s native token gained 1.42% yesterday as the broad market struggled with downtrends. Remember, Thursday’s session saw LUNA on the $99.47 week high, retesting the $100 resistance before succumbing to bearish market forces.
Terra Ecosystem Improvements Ensure Support for LUNA Price
Terra ecosystem has seen a busy year, triggering a surge in total value locked. DeFi Llama data shows Terra’s TVL surged to $29.13 billion at this publication from the 1 January figure of $18.45 billion. The 58% TVL increase comes from various projects within the platform, including LIDO (LDO), Astroport (ASTRO), and Anchor Protocol (ANC).
Anchor boasted a 54.58% dominance (at this publication), driving LUNA investor appetite and TerraUSD (UST) demand. Anchor is a DeFi protocol on the Terra blockchain. It currently offers APY (annualized percentage yields) of up to 19% on staked TerraUSD.
Meanwhile, LIDO offers LUNA investors a more lucrative 6.7% APY, higher than Solana’s 5.2 and Ethereum’s annualized yields of 3.9%.
Demand for LUNA assets as staking crypto adds support to LUNA price. Staking Rewards shows LUNA ranking 3rd, behind SOL and ETH by TSV (total staked value). The overall USD value for participating LUNA staking hovered at $27.89 million, a nearly 41.88% of qualified coins.
Terra Price Action
LUNA traded 0.73% down at $89.88 during this publication. The alt should climb past pivot at $90.33 to eye the initial massive resistance at $91.81. Global market sentiment should improve to back the move to $91. Extended upside will see the alt at $93.09 before challenging the $95 resistance.
Failure to overcome the pivot will see LUNA exploring the initial support at $89.06. The second dependable support floor sits at $87.56. However, the 4hr candle chart and EMAs display a bearish sign. For now, LUNA stands beneath 50-dayEMA of $91.08.
Early sessions saw 50-day Exponential Moving Average steadied on the 100-dayEMA. Also, the 100-dayEMA held steady on the 200-dayEMA, displaying a positive LUNA. Increased 50-day and 100-day EMAs convergence on the 200-dayEMA would back the surge to $95.
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