Archived Article This article was published more than 5 months ago. The market data, prices, forecasts, and analysis were accurate at the time of publication but may have changed since then. Please use this article for historical reference only and refer to our latest content for current market information.
- The Terra price is doing relatively well on Thursday. LUNA, its native token, has risen to $76.25, which is a few points below its ATH
The Terra price is doing relatively well on Thursday. LUNA, its native token, has risen to $76.25, which is a few points below its all-time high of $78.2. The coin’s price has almost doubled in the past week. This growth has brought its total market capitalization to more than $28 billion, making it the 9th biggest cryptocurrency in the world.
Terra is a leading smart contract platform that is governed by Terraform Labs, a South Korean company. The network enables people to build decentralized applications. One of its key use-cases is in the Decentralized Finance (DeFi) industry, where it has been used to build apps like Anchor, Lido, Terraswap, and Mirror.
According to DeFi Llama, Terra’s DeFi platforms have a combined value locked of more than $15 billion. This makes it the fourth-biggest ecosystem after Ethereum, Binance Smart Chain, and Solana. Terra has also been used to build stablecoins. The most popular one is TerraUST that has a market cap of more than $8 billion. Therefore, the Terra price is rising because of the performance of UST and its DeFi ecosystem.
Terra price prediction
The daily chart shows that the LUNA price has been in a strong bullish trend in the past few months. The coin has managed to move above the upper side of the rising wedge pattern that is shown in black. This is a bullish sign since the wedge pattern is usually a bearish sign.
A closer look shows that the coin is significantly above the 25-day and 50-day moving averages. The Relative Strength Index (RSI) is approaching the overbought level. Therefore, as the Terra price approaches its all-time high, I believe that the bullish momentum will keep rising. This could see it rise to about $100 in the coming weeks. On the flip side, a drop below $50 will invalidate this view.
