- Terra’s upgrade to Columbus 5 is on, expected to bring more scalability and features for projects.
- Columbus 5 is Terra’s most significant one yet since it introduces a new “burn” policy.
- The wormhole, or the bridge between Terra to Solana projects, goes live with Columbus 5.
The Terra ecosystem undergoes major changes with the arrival of Columbus 5. The upgrade brings a slew of developments and features to the protocol.
Columbus 5 is here, Wormhole and Burn policy to be live soon
Terra’s most significant upgrade yet has been set in motion at 3:30 AM GMT on September 30, 2021. The upgrade is bringing three critical changes to Terra. There is a planned upgrade to Stargate, integration of IBC protocol, Ozone, Wormhole and a new burn policy.
These changes are expected to influence the growth of the ecosystem positively.
The most-awaited addition is the ‘Burn policy’. Traders and speculators have awaited the implementation of burn in LUNA.
Proponents expect this new policy to have a similar impact on LUNA as it did on the Ethereum ecosystem, pulling tokens out of the circulating supply by burning them. Furthermore, it is expected to have a positive impact on LUNA price by creating scarcity across exchanges.
LUNA has offered relatively higher risk-adjusted returns than most other cryptocurrencies over the past two weeks in anticipation of Columbus 5 launch. Analysts have compared the altcoin to Solana before its explosive rally.
Mike Novogratz, CEO of Galaxy Investment partners, is enthusiastic on the arrival of Columbus,
$Luna trades amazing. Columbus coming. Same with “Next with Novo” podcast…mostly lots of new projects post Columbus. It reminds me of $SOL pre huge ramp. $BTC and $ETH will consolidate. Just my thoughts. Remember you don’t need to catch everything. Focus on what’s working.— Mike Novogratz (@novogratz) September 24, 2021
Stargate will enable integration with the Inter Blockchain Communication protocol to facilitate more interchain use cases. As of now, Terra has 8 live protocols, and the number is expected to multiply in the future with Stargate.
UST is expected to emerge as a preferred stablecoin for decentralized applications.
Ryan Watkins, a senior research analyst at Messari Crypto, believes that UST growth will accelerate beyond $2.5 billion in circulation.
In 2021 Terra's UST became a leading decentralized stablecoin reaching $2.5BN+ in circulation.
With Colombus-5 and Wormhole V2 going live in the coming weeks, UST growth will likely accelerate, setting it up to challenge DAI for the top spot among decentralized stablecoins.
1/ pic.twitter.com/jz5n3oITSi— Ryan Watkins (@RyanWatkins_) September 15, 2021
The introduction of Wormhole and Ozone provides insurance to projects built by Terraform Labs and bridges projects on Terra to Solana. When UST moves between both networks, analysts expect further integration and collaboration between projects on both blockchain networks.
The launch of the wormhole triggered an explosive rally in Solana. It is therefore considered as a key factor that is likely to drive LUNA demand and utility higher.
The team behind Terra will share further updates once the upgrade is complete. Until then, they recommend no interaction with the Terra blockchain.
UPDATE — The Columbus-5 migration has commenced and is currently underway. DO NOT interact with the Terra blockchain during this period.
We will immediately relay once the migration is complete and Columbus-5 is live, stable, and accessible by all.
Please stay tuned.— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) September 30, 2021
Jay Jaboneta, managing director of DLSL Nexus, expects over 50 protocols to go live on Terra in the following months. Jaboneta tweeted,
Jay Jaboneta, managing director of DLSL Nexus, expects over 50 protocols to go live on Terra in the following months. Jaboneta tweeted,
Terra price analysis: LUNA breaks above $54. Is the position sustainable?
- Terra price analysis is bullish today as the coin has hit a record high.
- The price is now touching the $57 level.
- The previous ATH at $54 now turns into a support level for LUNA.
The Terra price analysis reveals the coin has broken through to a record high today, as the price broke above $54 and is now trading above $57. The LUNA/USD has been bullish for the last four days, as the coin has been on an upwards trend since then, gaining significant value, and today it rallied high, and another all-time high price is being observed.
LUNA/USD 1-day price chart: Bullish momentum takes LUNA to a $57 record high
The 1-day price chart for Terra price analysis shows that the coin raced high above the previous ATH of $54 as it is trading hands at $57.4 at the time of writing. The LUNA/USD pair reports an increase in value by 8.9 percent over the last 24 hours and also an increase in value by 36.2 percent over the course of the past seven days. The market cap has improved by 11.6 percent, and the trading volume has increased by 35.4 percent.
The volatility has been increasing for the crypto pair as the Bollinger bands started to expand yesterday, and the divergence continues today as well, with the upper band at $55.6 representing support for the LUNA/USD pair. The moving average (MA) is present at the $45.5 mark.
The LUNA/USD pair is nearing the overbought state as the relative strength index (RSI) continues to trade on an upwards curve at index 65. But the RSI still shows some more room for bullish activity.
Terra price analysis: Recent developments and further technical indications
The 4-hour Terra price analysis shows that the price breakout was downwards today, but after correcting for four hours, bulls took over the price function, and the price started oscillating fast upwards, breaking out to a record high of $57.4, but as the last candlestick on the 4-hour chart is red, so bulls might need some rest, before rallying further high, or maybe bears took over again.
The volatility on the 4-hour chart is quite high as the volatility indicator covers a larger area, with the price trading just below the upper limit of the indicator. The RSI continues to trade in the overbought zone on a straight line, indicating the weakness of buyers’ strength.
As the trend has been upwards for the past few days, the technical indicators for Terra price analysis are also supporting the bullish side, with 17 indicators showing buy signs and only one indicator showing a sell sign. The remaining eight technical indicators stand neutral and don’t show support for either side, out of a total of 26 technical indicators.
Terra price analysis conclusion
The Terra price analysis shows that the crypto pair is highly bullish at this moment in time, with the highest spike in price observed today. Prospects are brighter for LUNA as it broke out to a new all-time high today. However, cautious trading is advised beyond this point as the price is already at a quite higher level, and a correction may start any time, as the 4-hour price chart indicates as well.
Is it about time Terra breaks its price downtrend and reignites rally
After Bitcoin’s Black Friday crash, the entire market seemed to turn red barring some altcoins like Crypto.com coin and surprisingly, Terra (LUNA). In fact, LUNA was one of the only alts in the top 20 to see over 5% daily and 8% weekly gains.
Layer-1 protocols like Avalanche (AVAX) and Terra (LUNA) have been able to record high year-to-date returns. LUNA’s yearly ROI v. USD, at the time of writing, stood at a staggering +11749.61%. However, the 14th ranked altcoin has closely followed BTC’s price movement since 16 November, post which, it registered close to 25% losses.
LUNA making a return?
LUNA’s price made lower lows after its price fall on 16 November, even though AVAX’s trajectory gained momentum soon after. It seemed like LUNA was more affected by the larger market fall and followed Bitcoin’s price. In fact, its RSI too has been on a downtrend since 9 November.
Since 26 November, however, LUNA started seeing minor gains as its RSI broke out of the downtrend it was in all through November. At the time of writing, the alt’s price had broken above the crucial $45.56-mark which has been an important resistance for LUNA.
Keeping aside the recent price falls, LUNA’s macro-uptrend still remains intact. In fact, post-Terra’s Columbus-5 upgrade, LUNA’s price has maintained a decent trajectory, performing independently from the market.
TerraUSD, Terra’s native stablecoin backed by LUNA, has also seen growth in its market cap over the last month. Its market cap rose from under $3 billion on 10 November to $7.17 billion, at the time of writing.
Here’s what’s missing
After hitting the $10 billion mark, Terra’s TVL began to decline over the last week, falling to $9.39 billion, down 6% from last week. This fall in its TVL could be indicative of the waning institutional interest as the alt’s price closely followed BTC’s price.
Furthermore, missing retail FOMO in Terra’s rally seemed to be a worrying trend. Notably, trade volumes have been pretty low and a macro downtrend in trade volumes since October could be seen.
Nonetheless, the alt’s price seemed to finally break away from the downtrend as its funding rate saw an uptick. In fact, its Open Interest on the Perpetuals market saw an almost 4% increase.
A lack of both institutional and retail interest in the alt could be one reason behind its price falls, apart from the positive BTC correlation which the alt seemed to break at the time of writing. With the price trend for LUNA picking up pace, a move from the retail side can push the crypto to new ATHs.
Terra price analysis: LUNA rises back to $42 recovering from the flash crash to $38
- Terra price analysis suggests upwards breakout from $44
- The closest support level lies at $41.24
- LUNA faces resistance at the $44.00 mark.
The Terra price analysis shows that LUNA has observed sharp volatility over the last 24 hours as the rejection at $44 caused it to crash to the $38.00 support level. However, the buyers bounced back from the level recovering to the $42.00 mark as LUNA appears to be making another attempt at the $44.00 resistance.
The broader cryptocurrency market has observed a bearish market sentiment over the last 24-hours as most major cryptocurrencies record positive price movements. Major players include ETH and BTC recording a 10.01 and an 8.28 percent decline respectively.
Terra price analysis: Bulls dominate as the price approaches $44
Across the technical indicators, the MACD is currently bullish as expressed in the green color of the histogram. However, the indicator shows low momentum as the histogram is small at press time. Furthermore, the indicator has observed four crossovers across the last four days suggesting a lack of a clear direction for the Terra price analysis.
The EMAs are currently trading close to the mean position as Terra records little net movement across November. At press time, the 26-EMA is moving horizontally reflecting the oscillating price action over the past 2 days. On the other hand, the 12-EMA has reacted to the recent price movements reflecting the sudden crash and recovery and currently moves with an upwards slope.
The RSI is currently neutral and trades close to the mean at 52.98 index marks suggesting a slight bullish bias to the price action. At press time, the indicator is moving upwards suggesting an increasing buying activity in the markets. The indicator has remained neutral for a long time suggesting that LUNA has observed little volatility across the mid-term charts.
The Bollinger Bands are currently wide but show and continue to remain wide suggesting a period of high volatility for the Terra price action across the 4-hour price charts. Previously, the bands’ mean line presented a resistance level to the buyers at $41.00 but as LUNA climbed above the mark, the level now provides a support level to the bulls for further upward movements.
Technical analysis for LUNA/USDT
Overall, the 4-hour Terra price analysis issues a sell signal with nine of the 26 major technical indicators showing support to the bears. On the other hand, eight of the indicators support the bulls suggesting that there is significant buying activity occurring in the markets. Meanwhile, the remaining nine indicators sit on the fence and issue no signals at the time of writing.
The 24-hour Terra price analysis shares this sentiment and issues a sell signal with 10 indicators suggesting an upwards price movement against six indicators suggesting a downwards price movement. The analysis reaffirms the bearish dominance in the markets, the mid-term charts but suggests that the trend might be changing across the short-term as more technicals turn bullish.
What to expect from the Terra price analysis?
The Terra price analysis shows that LUNA is currently stuck on a fragile balance of momentum towards either side as the price action observes sharp movement between $44 and the $38.00 mark over the last three days with no breakout in either direction. However, the high volatility shows that the buyers are active and not speculating suggesting that a rally may be initiated at any time.
Currently, traders should expect the Terra price analysis to move upwards to challenge the $44.00 mark as the buyers continue to gather momentum. This suggestion is supported by the short-term technical indicators and while the mid-term technical analyses show support to the bears, the technicals are slowly starting to lean towards the bulls increasing the possibility of an upwards breakout to the $45.00 mark.