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Terra (LUNA) Surpasses Its Former ATH After Rebounding 30% in 3 Days

In a market that is trying to recover, Terra Luna outperforms the other Top 50 cryptocurrencies by signing a performance of more than 30% over the last three days. A ride that takes (LUNA) past its December 27 peak at $103.34.

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Terra (Luna) is the only crypto among the top 10 that has been able to undo this bear market at the start of the year. It recovered from its quarterly low at $47.56 to climb back above $100. An upward trend fueled by a favorable chart structure but also solid fundamentals of an ecosystem that is currently positioned in second place among projects by TVL.

A week ago, we were trying to analyze Terra’s chances of overthrowing her old HUD . Unfortunately, the context of the Ukrainian crisis had swept the traditional financial markets as well as the cryptocurrency market.   LUNA had taken its share by falling to $78. But with an increasing TVL and a less hostile regulation of cryptocurrencies, the price of LUNA ended up flying.

Let’s see the upside factors in detail

The Fundamental Elements Of The Terra (LUNA) Ecosystem

Terra (LUNA) Surpasses Its Former ATH After Rebounding 30% in 3 Days

Terra Ecosystem (LUNA) TVL statistics. Source: DeFi Llama

Lately, the Terra ecosystem has become the second project that has the most tokens locked in staking protocols ahead of the BSC. Its increasing TVL scares Ethereum, whose market share falls to 55%. Currently, Terra has more than twice as many locked values ​​as its follower, the BSC. Its TVL stands at $26.58 billion compared to $12.7 billion for the Binance Chain ecosystem. The growth of locked values ​​is quite incredible:

  • +20.11% => daily rate 
  • +12.87% => weekly rhythm 
  • +78.30% => monthly rate

Source: DeFi Llama

The massive destruction of LUNA tokens   also served to skyrocket the price of Terra. There would be more than 120 million tokens that have been withdrawn from the market, including more than 30 million over the last 30 days. At the same time, the supply of the stablecoin of the ecosystem, the UST increases to reach 1.4 billion tokens. You have to understand when the supply of the stablecoin of Terra increases, the price of LUNA also increases.

 

Terra (LUNA) Surpasses Its Former ATH After Rebounding 30% in 3 Days

LUNA token offer compared to UST. Source: Cointelegraph

LUNA Price Doubled In Less Than A Month

The price of Terra (LUNA) rose from $47.56   to $104.11   between February 20 at the time of writing this article. This totals an increase of 118.90% in less than 21 days.   When we base ourselves on the technical analysis, we see that the asset price curve would have formed on a sort of “bull flag.

Terra (LUNA) Surpasses Its Former ATH After Rebounding 30% in 3 Days

Evolution of the price of LUNA. Source: TradingView

 

After consolidating under the flag, we can clearly see that Terra broke the top of the range with this record performance in three days. A breakout confirmed by growth in the volume indicator. According to data from CoinMarketCap, the intraday trading volume on Terra is up to $6 billion with a daily increase of 76.71%. 

The ex ATH will most certainly serve as a resistance to Terra. Buyers should continue to pressure this line into support for higher levels. However, if buyers fail to overcome the former ATH, Terra’s price will return to its penultimate line of resistance at $91.64.

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