Terra (LUNA), one of the popular cryptocurrencies, faced disappointment in its attempts to regain its billion-dollar market value after the hacking incident in August. This situation led to the lowest price for LUNA so far. In the midst of all this, we will conduct an in-depth technical analysis of Luna’s price and examine its future performance.
A Brief Look at Terra LUNA 2.0
Launched to support the UST stablecoin, LUNA emerged in the middle of 2022 as a reformulation of the original Terra, founded by Daniel Shin and Do Kwon in 2018, following the collapse of the original Terra in May of the previous year.
Terra LUNA 2.0 represents the latest update to the Terra LUNA blockchain conceptualized as part of a revitalization strategy. The primary goal of Terra 2.0 was to rebuild confidence in the stablecoin by launching a renewed version within the Terra ecosystem.
As part of the Terra 2.0 policies, specific conditions were offered to investors to receive additional LUNA tokens. This condition was particularly applicable to those who held more than 10,000 LUNA tokens before a significant devaluation of the stablecoin. About 30% of the LUNA assets, a significant portion, will be distributed by offering additional LUNA tokens immediately after Terra 2.0 is accepted. The remaining 70% will be distributed over a two-year period. The aim of this measure was to prevent immediate selling of LUNA assets after the adoption of Terra 2.0.
LUNA Price History
The new LUNA tokens, also known as LUNA2, were distributed to eligible wallet addresses on May 28, 2022. Opening at $18.98, the new LUNA experienced a sharp decline instead of the expected rise. However, after rising to $11.97 for a while, it quickly dropped to $1.96.
The suspension of withdrawal transactions on platforms signaling bearish signals in the cryptocurrency market further worsened the situation, and on June 18th, LUNA dropped to $1.66. Although it experienced a recovery in the following months, the crypto asset faced continuous downward selling pressure and dropped to $1.53 in August 2022.
However, recovering in September, LUNA experienced another decline in November, reaching $2.70, slightly higher than the low level of $2.26. Yet, it fell to $1.44 following the collapse of the FTX exchange. After this collapse, while legal proceedings continued, the markets showed a modest positive response, and LUNC demonstrated a modest recovery, closing the year around $1.26.
The bull run in early 2023 elevated the altcoin to $2.52 in January. However, it was followed by a gradual decline. The fall intensified with the collapse of Silvergate Bank and Kwon’s arrest, leading LUNC to trade around $1.25. After a brief half-point increase, it then slipped to $1.42.
After reaching a low level of around $0.4 in November, the recent market recovery has lifted the price of Terra LUNA.
Technical Analysis of Terra LUNA Price
The optimistic scenario in the cryptocurrency market in recent times has positively influenced the price of LUNA. Moving steadily upward with the “Uptober” trend, LUNA continued to rise significantly after reaching the $0.55 level.
The price recently faced strong buying pressure, and after Bitcoin approached the $37,000 mark, LUNA easily surpassed multiple resistance levels. However, a comprehensive technical analysis of LUNA’s price reveals mixed indicators.
LUNA’s current price, according to Coinmarketcap data, is $0.75, experiencing a 5.7% decrease in the last 24 hours. Due to the continuing bearish trend, it is believed that the current upward momentum will soon diminish. However, bulls are trying to prevent LUNA’s price from falling below the $0.65 support level.
As the daily price chart shows, as long as the Terra LUNA price continues to trade below the EMA200, sellers are opening more short positions. The Power Balance indicator is currently trading at 0.35 in a positive zone, indicating that sellers are increasing their dominance on the price chart. The RSI-14 indicators recently increased as sellers failed to hold the demand around $0.55. Since the trend line is currently trading at the 55 level, it is above the middle line, indicating the potential for further upward correction.
The Terra LUNA price will soon attempt to rise above the 23.6% Fibonacci level to reach short-term bullish targets around $1. If bears cannot push the asset below the 0.038 Fibonacci region, the asset will experience an upward trend.
In an adverse scenario, if LUNA cannot hold above the critical support zone of $0.65, a sudden collapse may occur. This situation would cause the price to trade near the lower limit of the Bollinger Band at $0.51. If the price cannot sustain an upward trend, a more significant downtrend may start, potentially dropping to $0.44.
Analysts’ Price Predictions: Can LUNA exceed $1?
According to Digital Coin Price data, LUNA’s price is expected to surpass $1.61 in 2024. By the end of the next year, it is anticipated to reach a peak of $1.92. In long-term forecasts, the altcoin’s price could exceed $14.32 in 2032.
Coincodex’s current Terra price prediction indicates a potential decrease to $7.25. Terra maintained a 60% positive zone with a 21.14% volatility rate last month. Predictions suggest that it might be an opportune time to buy Terra. When historical trends and BTC halving cycles are examined, the lowest projected price for Terra in 2024 is around $0.651278.
Conclusion: Should You Invest in Terra Luna?
In previous years, before its ecosystem collapsed, Terra LUNA was a significant tool in the DeFi sector. At the end of 2021, Terra surpassed BNB Smart Chain to become the second-largest DeFi protocol with over $20 billion across applications.
The collapse of its ecosystem led to a significant drop in Terra LUNA’s price. This event has shaken investor confidence in smart contracts and algorithm-based cryptocurrencies. The decision to invest in Terra LUNA 2.0 should be made by the investor. Before investing in any digital asset, it is advisable for investors to conduct comprehensive research and build their portfolios accordingly.
Alternative Investment Option: Meme Kombat
Despite developments in the Terra Luna price, interest in Meme Kombat is increasing. Meme Kombat (MK), which uses blockchain technology, has become an alternative investment choice. It is offered to investors through a presale, providing an opportunity to earn APY.
The project that provides users with full control over betting offers a 112% staking opportunity. This feature allows MK token winners to earn significant rewards. Meme Kombat, which has exceeded $1.7 million in presales, can be purchased on the Ethereum network with ETH or USDT. Additionally, assets acquired with BNB or USDT on the Binance Smart Chain are currently trading at $0.189.