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.