Terra (LUNA), which has seen a surge in the last week, has experienced consolidation after the network began burning its supply of native tokens. LUNA currently trades at $51,16, with a 5% decline in daily charts.
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Yesterday was the day before Bitcoin and other major cryptocurrencies fell from their new all-time highs. LUNA began a rise to the upside yesterday and seems ready to break through the $54 resistance.
The rally was ruined by the flash crash, and LUNA were rejected in the area of the current levels.
Three major Terra network upgrades seem to have fueled the rally. NewsBTC reports that the network is ready to launch the Colombus-5 protocol and Wormhole 2.0 with Inter-Blockchain Communication.
The first was COL-5, which implemented a deflationary mechanism to LUNA. In addition, the upgrade was designed to increase Terra’s interoperable capabilities.
The past year has witnessed a lot of appreciation for tokens with a burnt supply system. Binance Coin, for instance (BNB), rose from $50 to an all time high of over $600.
Another example is Ethereum with its newly integrated EIP-1559. To make it more efficient, the network has changed its fee structure to include a percentage of ETH for each transaction.
LUNA might follow a similar trend with $80 as a possible reasonable target. But, LUNA can record additional gains above $100 and join Solana(SOL) in being one of the most successful performers in 2021.
Due to Terra’s potential disruption of the stablecoin market, Daniel Cheung (Investor) has been extremely bullish about Terra (LUNA). Cheung stated:
It is still possible to see the $LUNA Thesis. In short-term, $140 target price remains. Terra, a protocol with the highest potential for achieving a trillion dollars in market capitalization is long term. This is because TAM (the infinite amount of stable coins) is unlimited.
🔥It has begun
— Do Kwon 🌖 (@stablekwon) November 10, 2021
Terra (LUNA), Started its Moon Phase?
The altcoin market may be able to take advantage of the BTC dominance by moving in a sideways direction after the crash. This could lead to price discovery for LUNA.
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LUNA will need to reclaim $54 as well as break through the resistance of $56. A potential price target for $60 is also possible. Cheung added the following on LUNA’s potential to enter the top 10 by market cap, the current phase of the bull run, and the asset’s fundamentals:
Zooming out is a key skill. $LUNA & $SOL are amazing buying oppts here, bullish structure still very strong and story continues to get better here. They will both go parabolic soon. Bids are the best asset.