Terra Price Prediction: LUNA Builds Momentum To $40 After Taking A Breather
- Terra is almost stepping above $30, a move that will trigger the next price discovery phase to $40.
- A golden cross pattern suggests that buyers have the upper hand, and the least resistance path is upward.
Terra closed the week in the green, following an impressive up run from the lows traded in July at $5.5. Besides the remarkable gains, shining a light on heightened investor appetite for the token, developers have been lured to the protocol in the recent past.
According to Terra, the Anchor Protocol allows Terra stablecoin deposits to earn stable yield, powered by rewards of leading proof-of-stake blockchains. The network has also been attractive due to instant settlements, low fees, and seamless cross-border exchange.
Meanwhile, LUNA is trading at $29 in the wake of a recent correction from the all-time high of $36. Bulls are looking forward to regaining ground above $30, a move that will see Terra close the gap to the record high and perhaps stretch the bullish leg to $40.
Terra Set To Continue With The Uptrend
A golden cross formed within Terra's daily chart, as shown. This technical pattern developed the moment the 50-day moving average crossed above the 100-day moving average. Some of the most prominent technical analysts in the industry see this pattern as one of the most definitive buy signals that could start a bull run.
Traders often look out for this pattern to validated an uptrend and the price consolidating at a higher level. This will keep the uptrend intact, while the new all-time high would give way to gains above $40.
LUNA/USD Daily chart
In addition to the golden cross, the Moving Average Convergence Divergence, or MACD, adds credence to the optimistic outlook. This is a technical indicator following the path of a trend and calculates its momentum. Currently, it is bullish within the same time frame for the first time and has sustained the call to buy LUNA since early June. As the 12-day exponential moving average crossed above the 26-day exponential moving average, the odds for a bullish impulse increased significantly.
On the other hand, a sell signal was recently presented on the daily chart, insinuating that a correction was probable. Moreover, holders should know that a pullback could lead to more good than bad. Note that when the price retreats, more buying opportunities will come into the picture, hence, bolstering the price.