LUNA hits 3-month high after Terra enables Ethereum staking option

Photo from logowik.com
Photo from logowik.com

Key Takeaways:

  • Terra (LUNA) prices rallied 179.9% between July 20 to August 3.
  • LUNA prices reached 3 month high after launch of bETH as a collateral option on the Anchor Protocol

NEW DELHI (CoinChapter.com) — Terra (LUNA), the DeFi infrastructure and blockchain protocol, shot upwards after Anchor Protocol announced the launch of bETH (wrapped stETH on Terra Money) as a collateral option on its network. Terra, which backs the stablecoin TerraUSD, gained 42.3%, going from August 2’s low of $10.869 to August 3’s high of $15.442.

Moreover, altcoins with strong fundamentals seem to be gaining momentum, even as the entire crypto market remains skewed to the downside since July 31. Terra’s recent gain comes on the back of a 12-day long bull run, which saw it go from July 20’s low of $5.526 to August 3’s high of $15.472, gaining a staggering 179.98% in the process.

LUNA Prices Go Lunar

LUNA prices started moving upwards with the entire crypto market on July 21, after charting nine red candles on the daily chart.

However, as the crypto market exhausted its bullish momentum, LUNA staggered for a bit before consolidating. As a result, the altcoin started August with an 11.22% gain on August 1, followed by 2.98% on August 2. On Tuesday, LUNA gained 19.76%, its highest single-day growth since May 24.

Terra price trends on the daily chart. Source: LUNAUSD on Tradingview.com
Terra price trends on the daily chart. Source: LUNAUSD on Tradingview.com

Additionally, LUNA prices are above the 50-Day (Green), 100-Day (Red), and 200-Day (Ochre) Moving Average trendlines. Hence, the altcoin is bullish in the short, mid, and long-term ranges.

Also Read: Origo Network’s OGO erupts over 300% in just 24 hours; major dump ahead?

Moreover, the 200-Day MA line has crossed above the 100-Day MA line, forming a golden cross. A long-term MA trendline crosses above a short-term MA line, creating a Golden Cross chart pattern.

Immediate support for LUNA is at $13.045. If prices fall further, the next support level is at $11.141. On the other hand, resistance for the altcoin lies at $15.939, which should cap any upside movement barring an extended rally. If bulls breach above, the next resistance level is at $17.091.

LUNA momentum oscillators on the daily chart. Source:  LUNAUSD on Tradingview.com
LUNA momentum oscillators on the daily chart. Source: LUNAUSD on Tradingview.com

The Relative Strength Index for LUNA is in the overbought region with a value of 76.60. However, the RSI trendline is moving downwards and would likely cross into neutral territory soon.

Meanwhile, the MACD line (difference of 12-Day and 26-Day EMA) is above the MACD signal line (9-Day EMA of MACD), as the bars of the MACD histogram indicate. Thus, the trend-based momentum indicator is bullish for LUNA.

Ethereum Staking On Terra

Anchor Protocol, a money market for stablecoins, announced its partnership with Lido Finance to launch bonded Ether (wrapped staked Ether or stETH on Terra) as a collateral option on its network. Lido is a staking protocol for ETH and LUNA, which rewards stakers with stETH and bLUNA (bonded LUNA) tokens.

Using bETH as collateral to borrow UST would allow users to earn liquidity mining awards. Moreover, Ether is now the first collateral option to bring staking rewards from outside the Terra ecosystem.

Also Read: BSV dips as Craig Wright’s Bitcoin SV suffers a significant 51% attack.

bETH is a wrapped version of stETH made to work with the Terra blockchain. Users can wrap stETH to bETH, while the “holder gets staking rewards on bETH in Terra.”. Additionally, the move to bring bETH as collateral will add to Anchor Protocol’s asset bucket.

The increasing number of partners and projects on the Terra ecosystem highlights the blockchain’s adoption. Moreover, Terra provides access to NFTs, DeFi while supporting numerous payment protocols. Thus, it is safe to say that solid fundamentals were supporting the LUNA price rally Wednesday.

At the time of writing, LUNA was trading at $14.72, down 0.24% on the day.

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