LUNA will likely resume the bearish trend as bears target the key support level at $76.
- Sell Terra and set a take-profit at $76.
- Add a stop-loss at $110.
- Timeline: 1-2 days.
- Set a buy-stop at $90 and a take-profit at $100.
- Add a stop-loss at $80.
The Terra price is crawling back after dropping sharply in April. The LUNA/USD pair is trading at 85.70, which is above the important support level at 76.53, which was the lowest level in April. This price is below the year-to-date high of about 120.
Terra’s Recent Developments
Terra is a leading blockchain platform that is changing the financial industry. Developed in South Korea, it has become one of the most influential projects in the sector. For example, it has been used to build Chai, a financial application that has over 2 million users.
Terra is best-known for its stablecoin known as Terra USD, which has a total market cap of more than $18 billion, making it the third-biggest stablecoin in the world after Tether and USD Coin. Further, the platform has been used to build some of the biggest Decentralized Finance (DeFi) applications in the industry. They include Anchor Protocol and Astroport.
The LUNA/USD underperformed in April even as the total value locked (TVL) in the ecosystem rose to more than $30 billion. This makes it the second-biggest platform after Ethereum. While the TVL rose, data compiled by Terrascope shows that the number of transactions in most of the networks declined. The chart below shows that activity in Terra rose and then tumbled in April.
The LUNA/USD is now bouncing back as investors react to the recent interest rate decision by the Federal Reserve. The bank decided to hike interest rates by 0.50%, which was the biggest hike in over 20 years.
Therefore, the price action is happening since the hawkish tone by the Fed was already priced in by investors. It is also rising in line with the performance of other cryptocurrencies like Bitcoin and stock indices like Dow Jones.
Terra Price Prediction
The four-hour chart shows that the LUNA price found a strong support at $76.53 in April. It has now crawled back after the latest interest rate decision by the Federal Reserve. A closer look shows that the coin has formed what looks like an inverted cup and handle pattern. The MACD has moved slightly above the neutral level while the Relative Strength Index is at about 50. Therefore, the coin will likely resume the bearish trend as bears target the key support level at $76.