Terra (LUNA) is rising as demand for UST is pushed by spikes within the Anchor Protocol.
LUNA’s relationship with UST means elevated demand for UST, driving LUNA’s costs up.
LUNA is presently buying and selling in an ascending triangle sample, an indicator of a doable breakout.
Terra (LUNA) continues to outperform the remainder of the market by an enormous margin. LUNA is the one main cryptocurrency to check its all-time excessive because the crypto market turned bearish in November 2022.
The set off behind this rally has to do with the connection between LUNA and the steady cash that run on the Terra ecosystem, similar to TerraUSD (UST). As demand for UST grows, LUNA is burned, aiming to carry UST 1:1 to the greenback. Based on the financial legal guidelines of provide and demand, the extra LUNA is burned, the upper its value.
Not too long ago, there was an enormous demand for UST as traders wish to borrow it on Anchor Protocol, a platform with an APY of as much as 20%. This additionally signifies that the burn fee for LUNA has skyrocketed, and by extension, the value has additionally risen to the place it’s now.
So long as Anchor Protocol continues to pay an above-average APY, there is a good likelihood LUNA might simply hit new highs, probably above $200 within the close to time period.
LUNA buying and selling in a rising triangle
After the rally through which it hit new highs a number of days in the past, Terra is buying and selling in a rising triangle. That is an indicator of a doable breakout, which might see LUNA take a look at costs it has by no means examined earlier than.
LUNA is the one one of many main cryptocurrencies to rally. The value motion factors to a doable continuation of the rally that began a number of days in the past that might see LUNA hit new highs within the close to time period.