Terra LUNA price has been in a recovery mode in the past few days as speculation continues. LUNA rose to a high of $2.20, which was about 47% above the lowest level in August. Other affiliated tokens like Terra LUNA Classic, Mirror Protocol’s MIR, Anchor Protocol’s ANC, and USTC have also rebounded.
Is this a pump and dump scheme?
Terra LUNA price has made a spectacular comeback in the past few days as speculation in the market continues. The rally has been fueled by the ongoing recovery of Terra Classic USD, the stablecoin that was the nerve of Terra’s ecosystem. The “stablecoin has had a major comeback in the past few months as it remains about 530% above the lowest level this year. It is trading at $0.03, which is much higher than the all-time low of $0.0070.
This recovery has led many buyers believe that the coin will soon regain its peg at $1. However, it remains substantially lower than this price and it is unclear whether it will move to the peg. The “stablecoin’s” recovery also explains why tokens in Terra Classic’s ecosystem like Anchor, Astroport, and Mirror have all rebounded.
Still, from a fundamental perspective, Terra LUNA 2.0 has a long way to go. For one, it seems like development of the pillar assets in the ecosystem has stalled. Also, without a stablecoin like Terra USD, it is hard to see how some of those projects will work. Most importantly, there is the issue of trust since most people lost billions when the coin crashed in May.
Terra LUNA price prediction
The four-hour chart shows that LUNA price has been in a strong recovery in the past few days. It has emerged as one of the top-performing cryptocurrencies in the world. Along the way, the coin has moved comfortably above the 25-day and 50-day moving averages and is slightly below the important resistance level at $2.2190.
LUNA has also formed a small bullish pennant pattern. Therefore, there is a likelihood that the coin will rise and hit the next key resistance at $2.5. A move above this resistance will see it rise to the next important resistance at $3. A drop below the support at $1.7 will invalidate the bullish view.