Terra (LUNA) Targets $80 After Yet Another Breakout
Key Insights:
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LUNA hit a Friday high of $73.34.
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Wednesday’s $1bn LUNA private sale and stablecoin demand continued to support the latest breakout.
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$80 is the next target price
It was a bullish day for the crypto market on Friday. Hopes of a FED pause on lifting interest rates resulting from Russia’s invasion of Ukraine delivered support to riskier assets. Market reaction to the strong sanctions on Russia and hopes of limited impact on the global economy were also positive.
Recovering from an early morning low of $65.06, Terra (LUNA) surged to a late high of $73.34 before easing back. Following a 9.44% rally on Thursday, LUNA jumped by 12.04% to end the day at $73.14.
Hitting a new February high, the next target is January’s high of $92.67.
Stablecoin Demand Brings $80 Into Sight
On Wednesday, news hit the wires of Luna Foundation Guard (LFG) raising $1bn in a private token sale. The LFG created a Bitcoin (BTC) denominated reserve for Terra’s largest stablecoin, TerraUST (UST). Locked up for 4-years, the BTC reserve will ensure the 1:1 peg with the USD in the event of a UST redemption.
An anticipated rise in UST positions would lead to an increased burn of LUNA, which would be LUNA positive. Adding to the upside this week is an increase in stablecoin interest resulting from Russia’s invasion of Ukraine. While Bitcoin (BTC) and other altcoins have struggled this week, stablecoins have held their ground.
LUNA Price Action
At the time of writing, LUNA was up by 1.37% to $74.51.
Technical Indicators
LUNA will need to avoid the $70.5 pivot to make a run on the First Major Resistance Level at $76.0. The broader crypto market would need to support a breakout from $75 levels.
Another extended rally would bring the Second Major Resistance Level at $79 and $80 levels into play. The Third Major Resistance Level sits at $87.0.
A fall through the pivot would bring the First Major Support Level at $67.7 into play. In the case of an extended sell-off, LUNA could test the Second Major Support Level at $62.2.
Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bullish signal. LUNA continues to hold above the 200-day EMA currently at $58.0. We have also seen the 50-day EMA converge on the 200-day EMA overnight. A bullish cross of the 50-day EMA through the 100-day EMA would bring $80 levels into play.
A further narrowing of the 100-day EMA on the 200-day EMA would also support a run on $80.
LUNA will need to avoid a fall through to sub-$60 and the 50-day EMA at $57.90.
This article was originally posted on FX Empire