The Terra price has had a spectacular decline in the past few weeks. The LUNA price is trading at $6.03, which is 70% below its all-time high of $19.55. Its market capitalization has declined to $2.6 billion, which is significantly lower than where it was a few weeks ago. Its ranking has dropped from top 20 to the current 45.
What happened: For starters, Terra is a decentralized cryptocurrency for the digital economy. The Terra stablecoin allows people to offer instant settlements, low fees, and seamless cross-border payments. While the cryptocurrency is little known abroad, it is widely used in South Korea.
Terra has more than 2 million active users and more than $1 billion of total volume. Terra also supports smart contracts, enabled by CosmWasm that enables people to build apps on the go and run multiple chains. Like all cryptocurrencies, Terra price has dropped substantially in the past few days because of the overall sell-off in the industry.
Terra price prediction
Turning to the four-hour chart, we see that the LUNA price has recovered substantially from its lowest level last week. On the four-hour chart, the currency has struggled to move above the 23.6% Fibonacci retracement level. Also, unlike other currencies, it has not moved above the 25-day and 50-day moving averages.
Therefore, in my view, the LUNA price is still in a bearish trend and there is a possibility that it will retest last week’s low at $3.9450. However, a move above this week’s high of $7.45 will mean that there are still more buyers in the market.