- Terra has surged by more than 50% in the past five days.
- LUNA is now in price discovery mode, trading above $57.
- If the $55 support holds, prices could rise to $60 or higher.
Share this article
Terra is soaring. Further buying pressure could send the Layer 1 blockchain’s LUNA token higher, potentially nullifying any spike in profit-taking.
Terra Hits New All-Time Highs
Terra has re-entered price discovery mode and is outperforming the leading cryptocurrencies.
The Layer 1 blockchain’s LUNA token reached a new record high above $57 Tuesday following a 50% rally over the past five days. The bullish impulse resulted from a rebound of the 200-twelve-hour moving average at roughly $37.84. Now, it appears that Terra could be bound for a short-lived correction.
The Tom DeMark Sequential indicator has presented a sell signal on LUNA’s 12-hour chart. The bearish formation developed as a green nine candlestick. An increase in profit-taking around the current price levels could result in a one to four 12-hour candlesticks correction before the uptrend resumes.
Slicing through the Nov. 10 all-time high at $55 could help validate the pessimistic scenario. In this scenario, Terra could drop toward the 78.6% or 61.8% Fibonacci retracement level. These critical areas of support sit at $51.3 and $48.5 respectively.
Sidelined investors may take advantage of such a correction to re-enter into the market, which would allow LUNA to advance further.
It is worth noting that LUNA will continue to look bullish as long as the $55 support level holds. If it succeeds, LUNA could advance toward the 127.2% Fibonacci retracement level at nearly $60. If the uptrend is significant enough, the uptrend could extend toward $65 or even $72.
LUNA is trading at $57.59 at press time, which puts Terra’s market cap at roughly $22.5 billion. It’s currently the 13th-ranked cryptocurrency.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
Grayscale Says It’s Exploring Terra and Avalanche
Institutional investors may soon be able to buy into Terra and Avalanche. Grayscale has announced that it has added LUNA and AVAX to its list of assets under consideration. Grayscale…
Terra Is About to Burn 10% of Its Token Supply
Terra’s LUNA token has rallied on the news that a scheduled token burn will remove 10% of the total token supply. Terra Set for Token Burn Terra is closing in…
Terra’s Interoperability Updates Could Help LUNA Soar
Terra is about to see a spike in network adoption as it enables interoperability with other blockchains. The boost in use cases could help push LUNA into higher highs. Terra…