Terra Price Analysis - Bullish Catalysts Are Favorable For $100 Jump.

Terra Price Analysis - Bullish Catalysts Are Favorable For $100 Jump.

2021-12-11 | Daniel Smith

Terra Price Analysis - Bullish Catalysts Are Favorable For $100 Jump.

Terra (LUNA) is on track to hit $100 in the next weeks as it forms a typical bull pennant formation. In more depth, bull pennants show when price movements within a triangular configuration follow a strong upward advance. Numerous experts interpret it as an indication of bullish continuation, implying that the instrument would end up breaking above the triangle's top trend line, resuming its price surge upward. Furthermore, the profit objective of a bull pennant structure is normally the length equivalent to the amount of the preceding price movement, referred to as the flagpole, when assessed from the breakout point. On its lower-time frame chart, LUNA looks to be forming a consistent trend. Given that the breach occurs at the point where the bull pennant trend lines meet – the apex — the optimum profit objective is more than the flagpole height of $22. This puts LUNA on the verge of reaching $100. terra

LUNA/USD 1 DAY PRICE CHART: SOURCE - CONMARKETCAP.COM

Bullish catalysts that are favorable

The bullish technical setting in the Terra market became apparent as LUNA surged roughly 65 percent in less than three weeks becoming the tenth-largest cryptocurrency by market value. The digital asset surpassed Dogecoin (DOGE) and Avalanche (AVAX) in value, reaching moreover $28.60 billion, accounting for about 1.18 percent of the existing global cryptocurrency market capitalization of $2.30 trillion. Furthermore, the LUNA token price increased from $43.50 to nearly $77 on December 5, setting a new all-time high. Traders were influenced by Chiron Partners, a Hong Kong-based venture capital firm, which revealed earlier on December 8 that it had reared $50 million for a devoted fund, termed Chiron Terra Fund I, to build decentralized finance (DeFi) and metaverse-linked nonfungible token (NFT) projects atop the Terra blockchain. Chiron Partners' chief operations officer, Jake Cormack, attributed their choice to use Terra as their formal public ledger to the blockchain's latest Columbus-5 update, which claims to provide increased scalability and more cross-chain interoperability.

FOMO due to deflation

The Terra ecosystem is comprised of a collection of stablecoins tied to a growing number of fiat currencies, as well as a mining token, LUNA. Via "seigniorage" and transaction volumes, LUNA functions as a governance token, volatility absorption mechanism, and reward catcher. The volatility absorption characteristic, in fact, appears to be LUNA's most positive example. Importantly, the Terra ecosystem keeps its stablecoins pegged to currency by burning LUNA tokens. I Lords, if the price of TerraUSD (UST), Terra's indigenous stablecoin, rises beyond $1, the protocol burns LUNA to generate additional UST, restoring its value to $1. If the UST value falls below $1, the protocol exchanges the stablecoin for LUNA to keep its pricing stable. With the Columbus-5 improvement and Chiron's $50-million investment working to bring additional projects to the Terra ecosystem, fears of further deflationary pressure on LUNA have grown.

Talis' $2.3 million NFT marketplace

Prior to the Chiron release, Talis provided bullish signals for LUNA. To establish an NFT marketplace on the Terra blockchain, the business secured $2.3 million in investment headed by ParaFi Capital and Arrington Capital. Notwithstanding a big pullback in Bitcoin (BTC), Ether (ETH), and many other cryptocurrencies, LUNA surged about 13% two days following the release to hit a new all-time high.

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