LUNA Hitting Targets and Printing New ATHs
Back on October 6th, we mentioned LUNAs next resistance area would be around $52. We hit that level yesterday and pushed slightly higher so far today. The current new ATH is $53.18. We expect some profit-taking at this level but that can range from a few hours to a few days.
LUNA was also recently talked about from mega-firm – Grayscale. They say they are currently exploring LUNA and AVAX, amongst other Crypto to eventually add to their list of investments. Will LUNA and AVAX see a push from this news when it gets more attention tomorrow? Maybe, they are the two newest to be considered under consideration. That list already has 18 other Crypto on it at the moment.
SAND is Not the only game in Town
Now the resistance at $52 is a technical level and it’s also a new ATH. We are seeing a mixed bag of reactions all of the AltCoin world when it comes to printing this new ATH. Some respond with many days in a row of ATH after ATH while others take a 40-day cooldown even though they only just barely printed a new ATH.
The thing to remember here is, where will it find support on a pullback and where is my next potential resistance area. For that, we have three ideas. The first is a relatively small pullback onto the lower trendline. The resistance is at the next major level – $82.
The other option, down below, is to play the Rising Wedge. Something to remember about Rising Wedges found at the top of uptrends – they break to the downside 60% of the time. Now the rest of the technicals create a bullish thesis but it is something to keep in mind. The Rising Wedge targets a Measured Move from the Mouth of the Wedge. Depending on the day of the breakout above the pattern is where you would place the measured move. It would currently target somewhere near $78 which puts it in very close proximity to the other technical Price Discovery level of $82.
What is LUNA?
Some info on LUNA from CMC:
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements.
Development on Terra began in January 2018, and its mainnet officially launched in April 2019. As of September 2021, it offers stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik and the International Monetary Fund’s Special Drawing Rights basket of currencies — and it intends to roll out additional options.
Terra’s native token, LUNA, is used to stabilize the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.
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