The Terra price unstoppable bull-run is accelerating. The coin has surged by more than 14% in the past 24 hours, meaning that it has jumped by more 50% in the past 7 days. This is a remarkable performance considering that Bitcoin has declined by 5% in this period.
Terra news. There are several reasons why the LUNA price has surged in the past few weeks. First, the Terra ecosystem has expanded rapidly in the past few months. As shown below, the core platform has gained more users in form of Decentralized Finance, Anchor, Mirror, and yield farming. It has also been integrated in the likes of Band Protocol, Celsius, and Polygon. It has also expanded the number of stablecoins that it supports to 17 fiat currencies.
Second, the coin has jumped because of more demand, especially in South Korea, where it is a popular payment medium especially among young people. On-chain metrics show that the number of transactions in the network has jumped in the past few months.
Meanwhile, the ecosystem has seen the introduction of staking in the ecosystem. That has been achieved by the addition of the wrapped form of ether to the anchor protocol. Most importantly, the Terra price has jumped because of the fear of missing out (FOMO). Historically, investors tend to pile into cryptocurrencies when they see a parabolic rally. The concept of burning has also helped reduce supply of the coin.
Terra price prediction
In my last Luna prediction, I said that the coin would maintain the momentum but warned that there was a possibility of a pullback. That pullback is yet to happen.
The daily chart shows that the coin moved above the important resistance at $9.1860 on July 27. This was a notable level since it was along the upper side of the ascending channel. After that, the coin jumped above the 38.2% retracement level at $14.30 and the neckline of the previous double-top at $11.23.
Therefore, with momentum rising, there is a possibility that bulls will attempt to retest the key resistance level at $17.90, which is about 30% above the current level. This view will be invalidated if the price declines below $11.23.