Why LUNA? Major advantages/features
Terra – LUNA is a project by Terraform Labs, founded by Daniel Shin and Do Kwon. The duo had an ambition for rapid blockchain and cryptocurrency adoption by focusing on ease of use and price stability.
Terra makes it possible to create stablecoins pegged to a broad range of fiat currencies the Terra UST and Terra KRW – South Korean won. Terra currently has about twenty stablecoins in its ecosystem.
Terra is developed as the backend of different products and applications developed by Terra Labs and Terra Alliance.
You’ll have to burn an equivalent amount of LUNA, Terra’s native coin, to mint a stablecoin like the UST on the Terra blockchain network.
Conversely, UST can be burnt to redeem a proportional amount of LUNA from the Terra blockchain network.
Terra maintains a one-to-one peg for stablecoins via an algorithm that tracks the supply and demand of the stablecoin and adjusts it accordingly.
In an interview with Breaking Banks, Brett King, and Ajit Tripathi Terra’s co-founder & CEO Do Kwon stated that the network currently handles up to a thousand transactions per second at an average block time of about six seconds.
Future of LUNA Token
Terraform Labs built the Mirror Protocol, which runs on the Terra blockchain. It allows for token minting that mirrors different assets and stock prices.
Now that’s a game-changer. With access to the internet, anyone can gain exposure to the price action of US equities, commodities, and ETFs e.g. stocks like Tesla, Amazon, and Gamestop.
The Mirror protocol introduces the traditional stock market into the crypto space as synthetic assets, known as mAssets.
Minting mAssets requires a deposit of Terra’s UST stablecoin as collateral, which is also on the Binance Smart Chain.
Terra announced a partnership with Solona, Cosmos, and Web3 Foundation in June ’20. The partnership births Anchor.
Anchor is a savings/lending protocol where users can get stable interest rates on their crypto deposits, as Anchor does all the work behind the scene, staking them on different proof-of-stake blockchains.
Kash.io is a financial product by Intellabridge Technology Corporation that leverages Terra’s Mirror protocol, bringing traditional assets like stocks in the form of synthetic assets to a global user base.
- Terra – Axelar partnership brings interoperability to the Terra ecosystem – link
- Terra – Hummingbot partnership brings Automated Market Maker – AMM Arb to the Terra ecosystem – link
- Terra – Flip Side crypto partnership for on-chain anlytics – link
- Terra launches Project Surge, a community focused way of growing the Terra ecosystem – link
- Delight Labs Launched Terraswap an AMM DEX on the Terra blockchain – link
LUNA Token 2020/2021 Road map
- Terra will be working on its Columbus-5 network update in 2021 with no specific date in sight.
- Terra will also be hosting DeFi Connected, a virtual Hackathon on May 5th through 7th.
Most of Terra’s 2020 milestones have been completed, and there is currently no set road map for 2021 at the time of this publication.
Competition analysis with the most valued competitor
LUNA is currently ranked at the twenty-third position by market cap ahead of its primary competitor Reserve Rights RSR token, rated at number ninety-two according to coinmarketcap.com.
While the RSV stablecoin from the RSR token is pegged against the US dollar, Terra offers stablecoins pegged to the US dollar, Mongolian Tugrik, South Korean Won, and international monetary funds.
LUNA Token 2022 Price Levels and Projections
LUNA/USDT Weekly Chart Analysis
Chart by Tradingview
The LUNA/USDT pair witnessed a significant correction during January, which tumbled the coin price by 56%. The retracement rally formed its bottom at $45 and provided an excellent dip opportunity for crypto traders.
During the latter part of February, the recovery rally kicked off and breached some important resistance levels such as $60, $80, and the All-time high resistance of $100. The buyers marked the $119.18 level as the New ATH, registering a 170% gain from the $45 swing low.
On April 3rd, the weekly candle closing above the $100 mark suggested the bulls were ready for another leg up. However, this last week’s retest candle extended more than buyers’ expectations and dropped to the $92 mark.
Therefore, the resulting fakeout and the bearish RSI divergence could intensify the selling pressure for another correction.
The possible pullback could obtain strong support from the $74 mark aligned with the 0.382 Fibonacci retracement level or $61.5 support (0.5 FIB level). Any further correction would gradually lessen the possibility for bullish continuation.
Chart by Tradingview
The LUNA/BTC technical chart shows a steady bull run with occasional pullbacks to 20 EMA. On March 10th, the pair reached a new high of the $0.00266 mark, indicating a 123.7% gain since the last higher low($0.00119).
On April 6th, the buyers attempted to breach the new ATH resistance of $0.00266, but the sellers mounted a stiff barrier ahead and reverted the price immediately. The coin chart teases another correction under the influence of bearish RSI divergence.
A breakdown and candle closing below the $0.002 support would accelerate the selling momentum and dump the price to ascending trendline.
However, until this support trendline is intact, the traders can maintain bullish sentiment.
Luna Token price predictions for 2022
Amid the recovery sentiment from mid-February to March, the LUNA altcoin has outperformed the top two cryptocurrencies, Bitcoin(BTC) and Ethereum(ETH). However, as mentioned above, the coin price could experience another correction phase before hitting the next bull cycle.
The LUNA project presents an excellent growth potential, where the post-correction rally could drive the coin price above the All-Time High of $120.
Concerning the recent Jan-Feb correction period, the trend-based Fib extension indicator suggests the LUNA token price could reach the $145 mark by the year-end.
Luna Token price predictions for 2025
Assuming the uptrend continues, the LUNA coin price can reach the $300 mark in the next three years.
Luna Token price predictions for 2030
If the world sees no upcoming events like the pandemic or the current war-like situation between Russia and Ukraine, the LUNA coin price can surpass the $1000.
Is the LUNA token a Good Investment for the future?
Since the beginning of the bullish campaign, for the first time, the relative strength index – RSI (LUNAUSDT) on the weekly chart exits the overbought area to signal a more intense parabolic price explosion.
The uptrend remains valid as long as the RSI does not drop below level-30.
So yes, the LUNA token is an excellent investment for the future. However, you may want to deploy multiple strategies to maximize your gains on your way up, which involves allocating a portion of your portfolio for a long-term HODL and a fraction of that for short term long futures trade.
Allocating a fraction of your portfolio to long the LUNAUSDT futures will allow for locking in profits at opposing bearish divergence setups in the future while still holding the prominent spot position.
LUNA token Market Cap projections and demand/supply scenario
The market cap of the LUNA token can 4X from this point bring it to the top-20 position.
The primary reason is that Terra Labs is the only blockchain ecosystem that’s working on solving the problem from the time-value-money principle, which shows that if you hold the US currency over a period of time, the interest rate is lower than the inflation risk, consequently devaluing your holdings, thereby eroding the value of house hold savings.
HODLing the LUNA token is an excellent investment to hold into Q4 2021.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.