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Terra (LUNA)

Terra price analysis: LUNA set to launch up to $48 after price reaches 20-day EMA

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  • Terra price reached as high as $45.44 after consolidating on yesterday’s uptrend
  • Price could be set to reach as high as $48 in the current run
  • Trading volume also rose up 2 percent on the day

Terra price analysis for the day shows positive signs for the token, as it looks set to revisit heights set earlier in the month. Price rose more than 3.5 percent on the day, recording a high of $45.44 to reverse the downtrend that had been in play since November 14. Price dipped as low as $38.91 just 2 days ago, before trending up past the crucial 20-day exponential moving average (EMA) at $45.09, today. In the current trend, LUNA is tipped to go past the current resistance point at $48.12 along with a recovering larger cryptocurrency market.

Bitcoin rose more than 3 percent to sit just shy of the crucial $60,000 mark, whereas Ethereum also rose 3 percent up to $4,390. Major Altcoins also showed positive signs, led by Litecoin‘s 6 percent increment. Ripple and Dogecoin upped 1 percent each, whereas Polkadot and Solana rose 2 and 4 percent, respectively on the day’s trade.

LUNA/USD 24-hour chart: Heads and Shoulders pattern appears

On the 24-hour chart for Terra price analysis, formation of a classic Heads and Shoulders pattern can be seen, suggesting of an ongoing battle between buyers and sellers to manoeuvre price. After touching past the crucial EMAs at $45.23, price went down as low as $42.69. This can also be verified with the Moving Average Convergence Divergence (MACD) curve that currently sits well below its neutral zone. However, it carries the potential to increase from the 0.00 mark, as is suggested by the Relative Strength Index (RSI) value of 46.26 which indicates that Terra price is in need of buyer impetus at current trend.

Terra price analysis: LUNA set to launch up to $48 after price reaches 20-day EMA 2
Terra price analysis: 24-hour chart. Source: Trading View

LUNA/USD 4-hour chart: RSI looks to be pushing up with crucial trading sessions ahead

The 4-hour price action further compliments the 24-hour chart with a fully poised scenario between buyers and sellers for LUNA. Price looks to be pushing up past the 20-day EMA, with RSI value sitting just shy of 50 to indicate slight levels of valuation in the market for the token. A positive note can also be drawn from the Bollinger Bands’ trend, where price sits in-between the top and middle curves to show a potential upturn.

Terra price analysis: LUNA set to launch up to $48 after price reaches 20-day EMA 3
Terra price analysis: 4-hour chart. Source: Trading View

Terra price analysis: Conclusion

Technical indicators confirm that LUNA currently sits within a crucial buyer-seller battle. If price can sustain the current spell and move along the cryptocurrency market then Terra price may see the highs set earlier in the month, with the $48 resistance point the first target. However, if price ships from the current stage to go below the EMA, then LUNA may be set for a distinct period downwards with the $38.91 support floor an eventual destination.

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Terra (LUNA)

Terra price analysis: LUNA rises back to $42 recovering from the flash crash to $38

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  • 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 

Terra price analysis: LUNA rises back to $42 recovering from the flash crash to $38 1
Technical indicators for LUNA/USDT by Tradingview

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. 

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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. 

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What to expect from the Terra price analysis?

Terra price analysis: LUNA rises back to $42 recovering from the flash crash to $38 2
4-hour price chart by Tradingview

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.

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Terra (LUNA)

Can LUNA ‘burn’ its way to greater highs in the long term

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LUNA was the talk of the town in early November after it managed to breach the $50-mark and hit a new ATH. However, just like other altcoins, even LUNA couldn’t shield itself from the broader bearish sentiment. Since 14 November, the crypto has shed more than 20% of its value. At the time of writing, it was trading within the $40-bracket.

The ‘deflationary’ tag

Keeping aside its of-late performance, it should be borne in mind that LUNA’s macro-uptrend still remains intact. In fact, post-Terra’s Columbus-5 upgrade, LUNA has seen smooth sailing.

TerraUSD, Terra’s native stablecoin, is backed by LUNA. So, in order to increase the supply of TerraUSD, LUNA tokens need to be burned. Conversely, more LUNA is minted when UST’s demand dips.

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Here, it is to be noted that the burning strategy, isn’t new. Ethereum has had luck destroying its own coins post the EIP-1559 upgrade. In fact, after doing so, ETH too hit new highs before corrections set in.

Now, while the aforementioned mechanism is fundamentally great for cryptos, it’s worth remembering that LUNA wouldn’t become deflationary straight off the bat.

As per the latest data, 10% of LUNA’s supply is ‘officially gone‘ forever. Now, this comes as no surprise, especially since the community had voted and agreed to burn almost 89 million LUNA tokens.

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The supply of LUNA is further set to decrease with time. But, that’s only half of the equation. Only if the demand parallelly increases would the whole ‘scarce asset’ narrative make sense.

Can decreasing supply spark LT demand?

Theoretically, yes. But, other key factors like the inflation rate and stock to flow ratio need to be considered before coming to a conclusion.

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Consider this – In the month of September, LUNA’s S2F was seen hovering around the 18-mark. In October, the same inched up to 20. Interestingly, the same projected a value of 24, at the time of analysis. The improving state of this metric clearly highlights the shielded future of this altcoin.

The stock-to-flow model essentially quantifies scarcity by considering parameters like total supply and annual production. The higher the value, the better, and vice versa.

Similarly, the inflation rate has also slipped from 5.52% to 4.1% over the same timeframe. What this means is that LUNA’s long-term retention value has only been getting stronger with time.

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Further, as per Messari’s data, in ten years’ time, the projected supply is set to remain 996 million while the issuance percentage would also revolve around 96%. If these projections indeed materialize, the token would be lauded for its deflationary nature.

Source: Messari

What’s more, close to 36% of LUNA’s supply was staked, at the time of writing. Staking is a crucial factor because HODLers end up locking up coins for a specified period to fetch returns.

Now, as per data, LUNA’s staking yields currently revolve around 5%, which is decent enough to attract investors to buy more coins. Thus, the potential increase in demand is set to pull up the alt’s LT price even further.

Another set of positives

Terra network’s state of development activity has been pretty impressive, of late. The same was seen revolving around its yearly high, at the time of writing. This essentially means that developers are constantly working towards keeping the project relevant. Not only for sustenance, but for competition too.

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Parallelly, it can also be observed that the total value of all the assets staked on the Terra protocol was close to its ATH, at the time of writing.

Source: Santiment

Thus, keeping in mind all the aforementioned factors, especially the whole burning mechanism, it wouldn’t be wrong to claim that LUNA’s future prospects seem to be quite bright.

It’s just a matter of time that the alt commands even more dominance in the market and inches even higher on the rankings and price chart.

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Terra (LUNA)

Terra (LUNA) Price Prediction 2022 – 2025 -2030 | LUNA Price Forecast

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What is Terra?

Terra is a blockchain protocol that aims for price-stability and growth by combining and utilizing different aspects of fiat-pegged stablecoins and cryptocurrencies. It uses an elastic monetary policy to solve stability problems (which is enabled by mining incentives), and efficient fiscal policies and incentives to drive adoption.[1]

Terra believes that there is a demand for a decentralized, price-stable money protocol in both fiat and blockchain economies; and that if such a protocol succeeds, then it will have a significant impact as the best use case for cryptocurrencies.[1]

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It is home to its own stablecoin UST (TerraUSD), which is planned to be interoperable with every major blockchain, starting with Ethereum and Solana. It is an algorithmic stablecoin designed for scalability and is yield-bearing through Anchor Protocol; offering saving experiences that they claim rivals traditional savings.[2]

LUNA is the native token of the platform, and is the topic of discussion for this article; specifically its price direction for the near and distant future. It has a couple of interesting use cases that will be covered in some detail, as well as its tokenomics, team and more.

LUNA Price Prediction 2021


Below we take a look at LUNA and examine some details and predictions to estimate a reasonable price for 2021, as well as for the upcoming years. It should be noted that while price predictions are based on data, and often are analyzed by AI, they should never be taken as financial advice nor be used as a solid basis for an investment, and neither should this article. It is always highly recommended users do their own research into the projects whose tokens they wish to invest in.

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The whole crypto market is currently on the verge of a real bull run.

There is no broader consensus as crypto analysts are divided as some of them are still calling this market a bull trap.

Others, lead by famous on-chain experts like Will Clemente and Willy Woo, are calling this a preparation stage for a face-melting bull run. As always, bitcoin has the final say and altcoins will follow suit once the flag bearer decides the direction. Right now, Bitcoin is sucking the life out of altcoins but once it settles in the new price range, altcoins will start to pump – we have witnessed this scenario dozens of times in the distanced and more recent history.

Our price prediction model is bullish for the next 90 days with a hint of a bear market at the turn of the year. We expect whales and other bigger players in the market to take their profits around that time which will cause a typical and sudden crypto crash.

CaptainAltcoin team created a price prediction model with a multi-faceted approach to crypto that takes into account both technical analysis and fundamental assessment of each project.

Fundamentals that we evaluate are team, tokenomics, use case, community, marketing efforts, liquidity and exchange availability, hype & speculative potential and some other proprietary factors developed in our crypto lab.
Below is a tabular overview of how will LUNA develop in the short-term (for the next 90 days), according to our prediction model:

Majority of experts agree that this bull run will be an extended one and could last the whole 2022. CaptainAltcoin’s prediction model takes market sentiment into an account and reacts accordingly. Below is a month-by-month breakdown of 2022

Terra Price Prediction 2025 – 2030 – 2040 

Our prediction model sees LUNA reaching $ 390.18 in 2025.

What will Terra be worth in 5 years? 

The price of LUNA in 5 years could lie around $ 590.95, according to CaptainAltcoin’s prediction model.

What Terra will be worth in 2030?

Our forecasting model sees Terra reaching $780.368547412 in 2030.

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What Terra will be worth in 2040?

Our forecasting model sees Terra reaching $1950.92136853 in 2040.

Will Terra replace / surpass / overtake Bitcoin?

No, Terra will not replace or overtake BTC.

Can Terra reach $100?

Yes, Terra could reach $100 by the end of 2022.

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Can Terra reach $1000?

Yes, it is possible that Terra can reach $1000 but only in a distanced future, after 2030.

Is Terra worth buying?

We are advocates of moderately risky investing – invest most of your crypto portfolio in BTC (50%); 35% in a basket of big cap coins and the rest in small projects with huge upside. So, in this context, Terra is worth buying.

Is Terra a good investment?

Terra is, just like all other cryptocurrencies, a risky investment. It does have higher probability of going up than down because of the good use case, well-designed tokenomics, active community and a solid team behind it.

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How much will Terra be worth?

For the short-term future, it could reach $140.40721970481. In the long-term (8-10 years), it could jump to $780.368547412 or even higher.

Why will Terra succeed and go up in price?

Terra has a good use case, well-designed tokenomics, active community and a solid team behind it. All of these are a prerequisite for success and that is why our prediction model sees Terra rising up to $780.368547412 in 2030.

Why will Terra fail and drop in price?

Crypto projects fail for various reasons. Some of the most common ones are: team goes rogue and abandons the project, regulators declare it illegal and press exchanges to delist it, lack of media attention, more successful competitors, lack of well designed marketing strategy, losing community support, potential vulnerability in the protocol, failing to achieve anticipated minimum developement activity on the protocol, failing to attract new developers to build on their platform.

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Can Terra make you a millionaire?

Yes, if you buy large enough sum of it. Do not expect to invest $100 and become a Terra millionaire. But 10x price explosions are a common sight in crypto, so a $10k investment in Terra could make you a millionaire.

How high will Terra go?

Our forecasting model sees Terra price exploding and reaching $1950.92136853 in a distant future.

Fundamentals


Use Cases


LUNA has 3 primary use cases. It is on one hand a governance token that can be used for voting purposes[1], and more interestingly, it is the reserve asset for UST[2]. In order to mint 1 TerraUSD, $1 worth of the reserve asset (which in this case is LUNA) must be burned[2]

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Lastly LUNA is used for mining rewards, who in the short term absorb Terra contraction costs, but in the mid to long term are rewarded with increased mining rewards.[1]

Tokenomics


According to data gathered from CoinMarketCap and Messari:

The total supply currently sits at around 990,000,000, without a max supply

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Of that, ~406,000,000 are in circulation

And its inflation rate is currently at 6.26%

Some supplemental data:

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Its market cap is currently around $11,460,000,000

Its fully diluted market cap is ~$27,000,000,000 

It is ranked at #16 on CoinMarketCap and at #2 for DeFi on Messari

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The max supply of LUNA is currently not set, meaning that there is no cap as to how many tokens can exist. This can put it at the risk of additional inflation in the future since no ceiling exists that puts a limit on token mintage.

The data presented above can be subject to change, always visit the source for up-to-date information: Coinmarketcap – Messari

Team


According to CoinMarketCap: Terra was founded in January 2018 by Daniel Shin and Do Kwon. Together, they came up with the idea of a project that can drive the rapid adoption of blockchain technology and cryptocurrency through a focus on price stability and usability.

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Kwon took on the position of CEO of Terraform Labs, the company behind Terra. Prior to developing Terra, Shin co-founded and headed Ticket Monster, otherwise known as TMON — a major South Korean e-commerce platform.

He later co-founded Fast Track Asia, a startup incubator working with entrepreneurs to build fully functional companies. Kwon previously founded and served as CEO of Anyfi, a startup providing decentralized wireless mesh networking solutions. He has also worked as a software engineer for Microsoft and Apple.

The project has a sizable Twitter account that has over 100,000 followers at the time of writing. The account is very active in retweeting several relevant content every day, and it itself tweets about once per day. Their original tweets are often about the project itself, as well as about DeFi in general; with the occasional reply here and there. What the account doesn’t do is shill the token, promise gains, overhype the project… etc, which inspires some confidence and trust.

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Besides their Twitter, the project also has a YouTube channel, which currently has over 5,000 subscribers and a total view count a little north of 190,000. At the time of writing, the channel hasn’t uploaded anything in over 3 months; and based on their uploads, they seemed to have aimed for a monthly schedule. The channel features content such as AMAs and intros, and their most watched video is a 3 minute explanation of how Terra works.

Lastly, as is common with most projects, they also have a Medium where they post articles and blogs. For more in-depth updates, followers of the project can tune in to read about the latest the project has to talk about.

In terms of brand image, the project uses abstract and futuristic visuals with white, gray, black and blue shades; and their tone of voice is quite bold based on how they express their claims on their website. 

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