Terra (LUNA) had a run-up to all-time highs of $110.04 on Mar. 29, marking the fourth consecutive day of bullish action. At the time of publication, Terra trades at $108.3, up 6.05% in the last 24 hours and 14.86% over the past 7 days. Singapore-based Luna Foundation Guard (LFG) purchased $135 million worth of Bitcoin on Monday, as published by Bloomberg. Reports have it that the address associated with the foundation presently holds roughly $1.32 billion worth of Bitcoin. On Feb. 22, Do Kwon, founder, and CEO of Terraform Labs announced his intention to increase the size of the Bitcoin reserves to a whopping $10 billion. LFG decided to create a Bitcoin-denominated reserve to prop up the value of the UST stablecoin by keeping the cryptocurrency’s dollar peg intact.
Key Levels
Resistance Levels: $130.00, $120.00, $110.05
Support Levels: $97.50, $85.00, $75.00
LUNA/USD Daily ChartOn the daily chart, LUNA steadily surged to a high of $110.05 as market participants concentrated solely on good news. A weekly close above the moving average (MA 50) at $78.0 will remain a bullish indication. The bulls are eager to buy the drop in case of a retreat, and sentiment remains buoyant. The RSI is yet to enter the overbought zone, indicating an ongoing positive bias in momentum indicators.
A break over $110.05 would open the way to the $120.0 region. If the daily high is breached, the price is likely to rise further, possibly to $120 and then $130. On the other hand, if the price falls below and towards the moving average (MA 50) at $78.0, bearish pressures may reemerge, sending the LUNA down to MA 200 region.
LUNA/USD 4-Hour ChartThe LUNA/USD remains above its 4-hour moving averages (MA 50 & MA 200) with the price gearing up to a one-month high on Tuesday, after only closing above the ascending MA 50 in previous sessions. Although the short-term moving averages (MA 50 and MA 200) are now below the price, they have yet to exhibit symptoms of weakening, sustaining the bullish bias.
With the ongoing strength, LUNA stays bullish and the RSI was able to extend its uptrend somewhat near 80 points, indicating that positive momentum might be sustained in the short term. If the price falls below the $97.50 resistance turned support level, the decline may first stall around the red MA 50 line and the $90.00 handle.
Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
