Key LUNA Takeaways:
- Terra protocol’s native token LUNA gained 21% despite red candles across the altcoin market.
- CoinChapter’s previous prediction panned out, as LUNA broke out of the Ascending Triangle.
- Crypto Investment vehicle Grayscale considers adding Terra to its investment products.
- Terra will hand over insurance mechanism Ozone’s maintanance to Risk Harbor, a risk management marketplace.
YEREVAN (CoinChapter.com) – Stablecoin issuer Terra is a potential investment product target for Grayscale, the largest crypto investment vehicle. Meanwhile, the blockchain company’s governance token LUNA stood out amid altcoin consolidation and gained 8% in the past 24 hours, bringing weekly gains to 21%.
Moreover, the digital asset complied with CoinChapter’s prediction and broke out of the Ascending Triangle it traded in for six weeks. The pattern included a horizontal resistance trendline, capping the bullish attempts, and an ascending support line that prevented breakdowns.
LUNA formed the said Triangle after an impressive 700% rally since late July, so a continuation could follow now that the token broke the Triangle’s resistance line.
Terra LUNA sought additional support from the 20-day exponential moving average and traded above it for the previous week. As a result, the LUNA/USD exchange rate stood at $51.3 in the European session Friday, after hitting a record $53.7 on Nov 4.
Also read: Terra's LUNA jumped 28% in a week, while Terraform Labs is suing the SEC.
After the break, LUNA moved sideways. However, if the asset value declines in the upcoming hours, the token could retest the Triangle’s upper resistance as support and continue the uptrend. Additionally, Terra’s possible inclusion in Greyscale investment products could facilitate the uptrend.
Grayscale considering Terra
As the company confirmed on Nov 2, it’s exploring new products. For example, both Terra and layer-one blockchain Avalanche could be cut. The Grayscale list includes various digital assets, such as Polkadot, Solana, Polygon, and others.
The company asserted that the investment product preparations take time, so traders might have to wait. However, the consideration alone could be enough to pump the price.
Also read: LUNA hits all-time high as Terra's cross-chain interoperability upgrade Columbus-5 goes live.
Moreover, according to an announcement on Thursday, Risk Harbor — a risk management marketplace — will oversee Terra’s decentralized insurance mechanism Ozone. The latter provides coverage in the event of technical failures on the Terra ecosystem.
Terra’s community governance will take a vote. The protocol would then transfer Ozone’s maintenance and management to Risk Harbor in case of a positive outcome. Do Kwon, the co-founder, and CEO of Terraform Labs, the development company behind Terra, commented on the possible transfer.
Risk Harbor’s talented and ambitious team has extensive experience working with DeFi protocols [and created] one of the leading permissionless coverage marketplaces on Ethereum. We’re thrilled for the Terra community to have Risk Harbor take the reins of Ozone and pioneer a capital-efficient and decentralized risk management marketplace for the Terra ecosystem at large.
said the executive.
Also read: Ethereum triggers an altcoin recovery wave, as ETH hits a new ATH at $4.6K
Considering the positive developments in the Terra ecosystem and Grayscale’s consideration of creating an investment product, the LUNA rally could be underway. Additionally, technical analysis shows bullish potential as the token broke out of the Ascending Triangle formation.
