The Terra price is close to breaking out on the upside. Could this lead to LUNA setting an even higher record price sometime soon?
LUNA, the native token of the Terra ecosystem, has been one of the better performing top-ranked cryptocurrencies this year. Despite the recent turmoil in the market, the Terra price has returned 1,750% in 2021. This is not to mention that at May’s $23.18 high, LUNA had appreciated 3,600% from January the 1st.
This is partly due to the token’s popularity in South Korea, where it is widely used.
LUNA’s impressive price action has lifted the token to the rank of 24th-largest cryptocurrency, with a market cap of $4.6 billion, which values Terra over $500 million more than DeFi leader Aave.
Even considering the meteoric price appreciation this year, the bull run may be far from over.
LUNA price forecast
The daily chart shows LUNA is trading above the 50, 100 and 200-day moving averages at $6.75, $9.30, and $9.43, respectively. Furthermore, Terra has also broken through the top edge of a rising flag formation at $10.25.
However, the price has so far stalled at a considerable descending trend line at $12.40.
The trend from the May ATH offers significant price resistance and poses a real threat to the rally. However, if the Terra price climbs above this trend line, May’s record is achievable.
Although, this may require broader market strength. And therefore, traders should pay close attention to Bitcoin’s ongoing battle at $40,000.
If crypto sentiment sours and LUNA loses the support of the 100 and 200 DMAs, the near-term bullish outlook becomes invalid. In this event, a retreat to $6.75 looks likely.
However, the positive momentum remains encouraging, and today’s pause may prove to be just that. However, until the Terra price convincingly clears the trend line resistance, caution is warranted.
Terra price chart (Daily)
