LUNA Takes Off Like a Rocket

This week, the Terra token, LUNA, decided it was time to bounce back, soaring more than 30% in just three days. Reaching near $100 on March 9, it flirted with its record high of $106 set back in December 2021—oh, how those prices make us nostalgic. At its WTD low, LUNA was chilling at around $75.60, but clearly found its way back into the fast lane.

Burning Passion: 120 Million Tokens Gone!

Coinciding with LUNA’s price rebound was a significant trend in the market—more than 120 million LUNA coins were unceremoniously burned, making space for a more buoyant price. It seems the crypto gods were favorable, leading this rise in concert with gains elsewhere; for example, the folks over at Ethereum couldn’t contain their joy as Ether (ETH) jumped by 13.50% and Bitcoin (BTC) got in on the action with over a 14% uptick from its week’s dark days.

TerraUSD: The $1 Trillion Dream

Arthur Cheong, the mastermind behind DeFiance Capital, hinted that LUNA’s rise has a lot to do with Terra’s ambitions in the decentralized stablecoin market, estimated to be worth at least $1 trillion. Talk about aiming high! With the total addressable market being several trillion dollars, the future looks sunny (or at least moderately warm) for this project. On March 9, the supply of Terra’s UST tokens climbed over 1.4 billion—a milestone worth a celebratory dance amongst the investors.

Terra’s All-Time High Value Locked

If that wasn’t enough to fuel the LUNA fandom, the total value locked (TVL) in the Terra protocol skyrocketed from nearly $18 billion at the beginning of the year to an impressive $25.58 billion by March 9. With capital pouring in, LUNA tokens locked up soared from 215.80 million to 298.89 million. In short, Terra is a hot property that many are rushing to stake their claim in.

What Lies Ahead for LUNA?

Despite the soaring heights, there are storm clouds on the horizon. Technical indicators suggest LUNA may face some daunting challenges. There’s been a bearish divergence forming—indicating that while prices are increasing, momentum is not. That’s like hitting the gas but realizing the engine is losing steam. If LUNA falters, it could be headed for a sharp pullback to test its exponentially moving averages (EMAs), sitting at around $64 and $38—both worth keeping an eye on.