Terra (LUNA) rallies as demand for UST is pushed by Anchor Protocol surges.
LUNA’s relationship with UST means greater demand for UST drives LUNA costs up.
LUNA is at present buying and selling in an ascending triangle sample, an indicator of a possible breakout.
Terra (LUNA) continues to outperform the remainder of the market by an enormous margin. LUNA is the one main cryptocurrency that has retested its all-time highs for the reason that crypto market turned bearish in November 2021.
The set off behind this rally has to do with the connection between LUNA and the secure cash that run on the Terra ecosystem, equivalent to TerraUSD (UST). Because the demand for UST grows, LUNA is burned, with the objective being to maintain UST pegged 1:1 to the greenback. Going by the financial legal guidelines of demand and provide, the extra LUNA is burned, the upper the value goes.
Lately there was an enormous demand for UST, as traders look to lend it on Anchor Protocol, a platform with an APY of as much as 20%. This additionally signifies that the burn charge for LUNA has shot up, and by extension, the value has additionally gone as much as the degrees the place it’s now.
So long as Anchor Protocol retains paying an above-average APY, then the probabilities are that LUNA may simply go on to make new highs, probably above $200 within the quick time period.
LUNA buying and selling in an ascending triangle
After the rally that noticed it make new highs a couple of days in the past, Terra is buying and selling in an ascending triangle. That is an indicator of a possible breakout, which may see LUNA take a look at costs it has by no means examined earlier than.
LUNA is the one one of many main cryptocurrencies which are rallying. Its worth motion factors to a possible continuation of the rally that began a couple of days in the past and will see LUNA make new highs within the quick time period.