+107%, +32%: Spring is here for Terra LUNA and Avalanche AVAX!
Is it the beginning of spring or the AltSeason? For Terra LUNA and Avalanche AVAX, it's both!
After a year 2021 of all records for layer 1 blockchains , we have witnessed a rather harsh winter for many of them. While not the hardest hit by the correction, Terra LUNA and Avalanche AVAX experienced a 50% pullback at the peak of their pullback.
Both were recently cited as tokens to watch in 2022 by a reputable crypto analyst: Altcoin Sherpa. If the latter has drawn up a graphic analysis of these two assets, we will also see what they have under the hood by interesting us in their recent news.
- AVAX and LUNA very well oriented
- LUNA soon to the moon?
- A snowball effect with the Avalanche Summit?
Altcoin Sherpa’s Take On LUNA And AVAX
Altcoin analyst Sherpa, very active on his Youtube channel, recently gave his opinion on different altcoins in his latest video. In addition to the brand new Apecoin or Ethereum , let’s go back to his opinion on two layers 1 well established in the top 10: LUNA and AVAX.
As for the LUNA , he was very clear: the price structure is undoubtedly bullish with “higher and higher lows”. And while some may see a sort of head-and-shoulder chart pattern in H4, he advises against venturing to sell an asset that has shown great strength in recent weeks. His main focus is on $75. As long as price remains above this major support, there is nothing to worry about for LUNA.
Going back to AVAX, it is clear that the token is less popular than its counterpart lately. Altcoin Sherpa also tells us about a rather bearish market structure even on large time units like the D1. A bearish feeling that he translates by noticing “lower and lower lows and lower and lower highs”. However, he also notes that the AVAX is possibly about to break its bearish trendline which acts as resistance. If the break takes place, he evokes a first target around $100, even if according to him the token is not yet ready to break its highs in the days to come, unlike LUNA.
But Where Will Terra’s LUNA Stop?
The LUNA never ceases to impress observers. 3! this is the number of times the LUNA has broken its ATH since the spring of 2021 (if we only agree on the strongest and most straightforward breakouts). In comparison, Bitcoin and Ethereum had the worst trouble just hitting their ATH in November before crashing out this winter. It’s very simple: over the past year , LUNA has grown by more than 400%.
An increase that it owes in part to its atypical functioning. Indeed, the native token of the Terra blockchain is closely linked to the algorithmic stablecoin of the same network: the UST. Each time a user wants to create a UST he must burn its equivalent in LUNA. Inevitably, with a rather undecided market for a year, the UST supply is exploding and this is making LUNA rare.
A UST also boosted by the development of DeFi on Terra . Today the ecosystem is ranked 2nd behind Ethereum in terms of TVL with its 26 billion (12% of the market). A market which, it is true, is essentially based on a protocol that is fashionable to say the least: Anchor. With its 19% return in stablecoins, the booklet A inevitably pales in comparison..
Launch Of The Avalanche Summit!
For its part, the AVAX token of Avalanche is a little more late, of course, but its potential remains interesting. Moreover, for all fans of the ecosystem, the event of the year not to be missed has just started in Barcelona this Tuesday, March 22.
Taking place until Sunday, this gathering is an opportunity for developers and enthusiasts from around the world to gather around their favorite blockchain. An event in which certain announcements could take place and trigger a hype on the AVAX token.
In any case, Avalanche is doing well with the recent announcement of a budget of $290 million to develop its subnets. These are sub-networks of validators that are linked to the Avalanche parent chain.
Like Cosmos or Polkadot, Emin Gün Sirer’s network is trying to attract new developers by creating an entire ecosystem around Avalanche.
Like Terra Luna and Avalanche, layers 1 still seem to have a bright future ahead of them. However, they must watch out of the corner of their eye the most important event of this year 2022 in the cryptosphere: the Merge of Ethereum . Announced for the summer of 2022, the passage of Ethereum from POW to POS could reshuffle the cards on the world crypto chessboard. We will then see if layer 1s can survive Ethereum and its rollups.