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In our last Luna price prediction, we touched on targets that would be realistic if Terra Luna breaks the $100 psychological resistance. We did predict that prices were about the correct, and it would make sense to wait for a price drop towards the $80 price mark. This is exactly what happened. But today, prices are back up and eyeing the $100 price again. How could Luna price continue in the near future? Will we make a new all-time high since a new formation has formed on the charts? Let’s tackle all you need to know about LUNA in this LUNA price prediction!
What is Terra LUNA Crypto?
Terra is a blockchain protocol that used stablecoins to enable price stability in global payment networks. In fact, they claim to combine price stability and fiat currencies by enabling Bitcoin (BTC), thus offering cheap settlements. Volatility was a highly discussed topic in the cryptocurrency realm. It is one of the main reasons that made investors fear owning cryptos. Terra seeks to change that, by using fiat-pegged stablecoins. They would keep a “one stablecoin to one fiat” peg through a proprietary algorithm that automatically adjusts stablecoin supply based on its demand. This is feasible thanks to their token LUNA, which provides liquidity, price stability, and is easily swappable to other stablecoin at profitable exchange rates.
Will LUNA go up soon?
Terra Luna price has retested the $100 resistance since our last prediction. Further, the price has formed a trend line through the constant rejection from the resistance. This trendline is approaching resistance, which is why an ascending triangle has formed. Ascending triangles are continuation formations, so we believe a breakout is imminent here. Formations break out in most cases in the last third. Based on this, we believe that the price could break out at any time. This breakout will happen with about a 70% chance to the upside. Based on this statistic, we anticipate a bullish breakout.
Will LUNA reach $200?
Before tackling the $200 price mark, LUNA needs to reach and establish important price areas. If we draw a vertical line from the start of the triangle (beginning of the trendline to resistance ($100)) and place it on resistance, we get the target in case of a bullish breakout. This gives us a possible future price of around $135. Since the ABC sequence would finally be activated by a breakout, we see it as likely that the Luna price will rise to around $135. It is also possible for the price to rally towards $150 as the first target in the sequence, located at $145.
When LUNA starts to establish around $150 and draws an important area around that price, we can assume that prices will continue towards the psychological price of $200. On the other hand, weak prices that consolidate lower than $110 will drag this upside, most probably until late Q2 2022.