The crypto market is seeing some relief, and LUNA’s price has been trending downwards. Terra native cryptocurrency, which is the worst performing of the top 10, according to market capital, appears vulnerable to further decline.
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LUNA currently trades at $87, with a 17% and a 5% respectively in the last week.
Data from Material Indicators (MI) suggest thin support for LUNA’s price at its current levels. There are approximately $700,000.00 in bids orders. This could prove inefficient and prevent another attack by the bears.
Terra also has more than $3 million worth of ask orders, which can act as resistance to the price’s attempts at reclaiming previous highs. The high number of orders could cause LUNA to fail to surpass the $86 selling barrier.
If the price falls below those levels, then $81 will be used as support level. It has received around $2,000,000 in bids.
Nansen, an analytics platform that tracks data from the internet, provides additional information about Terra’s adoption. This network’s daily active address has been trending upwards from 2021. It now stands at 35,000. The price of LUNA saw a slight decline.
With a slight increase to 160,000 in March 2022, daily transactions seem to be moving slowly. This could suggest investors are onboarding the network, but with low bids for LUNA or Tera’s native product.
Terra (LUNA), expands. Why bulls could have the upper hand
All of the above indicate more sideways activity with downside risk in the near-term. Terra will continue to attract interest over the long-term.
Retail investors seem to be attracted to LUNA’s burning mechanism tied to the network’s native stablecoin UST. Investors can also generate 19% APY through the Anchor Protocol using these digital assets.
Rumors over the sustainability of Anchor’s 19% APY have surrounded social media in recent days. Attributable to the wager between Do Kwon and Gigantic Rebirth (GCR), a pseudonym Crypto trader who co-founded Terra Labs.
The price of the cryptocurrency LUNA will decide who wins. Do Kown wins if the cryptocurrency stays above $80 for a year.
The event cast doubts on the ecosystem beyond the wager and its price. In defense of Terra, LUNA, and UST fundamentals developer José María Macedo published an analysis on this network.
UST functions as both an algorithmic and decentralized stablecoin. DeFi Sector has experienced a lot of such assets. Often, they end up failing. But the Terra native stablecoin might be on its way. Macedo said:
$UST already defied the odds by not just surviving but thriving as a pure algo stable: growing supply, keeping a tight peg and withstanding shocks such as May ’21 What Terra achieved is truly unprecedented and few understand it (…). I’m bullish not because I think there are no risks, but because I understand the tradeoffs and believe the upside more than justifies the risk. The multi-trillion-dollar, winner-takes all market of decentralized stablecoins is one that $UST has the best position to succeed in.
Related Reading| Terra (LUNA) Surpasses Ethereum Becoming Second Most Staked Asset
Recently, the Anchor Protocol deployed on top the Avalanche network. This event seems to have had a positive reaction. Bulls will need to ensure support at current levels, closing a daily candle around $86 or higher.
