dailyhodl.com
Popular cryptocurrency analyst and trader Michaël van de Poppe is digging into the charts to plot out what Terra (LUNA) has in store price-wise as the crypto markets enter a new year.
In a new strategy session, Van de Poppe tells his 156,000 YouTube subscribers that he’s impressed by the Ethereum competitor’s strength among the other successful layer-1 altcoins.
“LUNA is one the strongest assets at this point in the cryptocurrency markets. Not only LUNA but also AVAX [Avalanche] has been doing really great. MATIC [Polygon] has been doing great.
All those layer-1s and projects that are comparable to layer-1 are doing great and are showing strength, while Bitcoin is showing weakness overall.”
The trader first considers where Terra stands in the current market cycle before making a prediction for the Ethereum competitor’s next leg up.
“When we’re looking at the price action we can say, ‘Okay, Terra/LUNA is already accelerating quite fast. Where is it in the current cycle?’
Most likely, we are somewhere in the stage of the previous run [in February 2021]. Such a consolidative period should be very comparable to the price action that we’re going to make, or what we’re seeing at this point, in which the price has been continually pushing upwards even more.”
During the February 2021 consolidation, LUNA traded between $5 and $8 before skyrocketing to $22 in March.
Moving on to the altcoin’s upper price targets for 2022, Van de Poppe cites two key levels he thinks LUNA can hit.
“If we are finishing such a corrective period, we could be looking at a Fibonacci extension, which we can derive from the previous low and previous high, in which we can start targeting two levels… $125 and we can target $200, as the next impulse waves based on the Fibonacci extension as long as the trend stays upwards.
If that is the case, we could be seeing this run.”
The Terra protocol’s native token LUNA underpins a suite of decentralized stablecoins. Terra itself is used for e-commerce payments and decentralized finance (DeFi) services.
The 9th-ranked crypto is up 4.43% in the last 24 hours, trading at $82.36 at time of writing.