Terra eyes a 35% rally ahead despite the halt in LUNA uptrend

YEREVAN (CoinChapter.com) – Terra (LUNA) traded at just below $90 on Apr. 19, halting the 20% jump witnessed the previous day. However, the coin’s bulls might have more to celebrate in the coming days, as it eyes a 35% bullish move on the back of favorable technicals and growing adoption.

Terra (LUNA) enjoys bullish technicals

In detail, the LUNA/USD chart formed a setup dubbed the ‘Rising Channel’ in late 2021. The Channel features parallel trendlines that encapsulate the price action as it trends higher, with its upper line acting as resistance and lower line as support.

Notably, the setup can only be instrumental for as long as the retests continue, i.e., it does not predict a future bias. However, as LUNA retested the formation’s mid-range as support on Apr. 17, another 35% price advance toward the Channel’s resistance might be in the books.

Should Terra token comply with the Channel’s prediction, it will establish a new all-time high at over $120. However, if the bulls don’t put enough buying pressure behind the LUNA surge, it could retest the support again before attempting another upside move.

Also read: Terra buys another $176M worth of Bitcoin — but LUNA crashes anyway.

Additionally, the trend-based MACD oscillator (histogram at the bottom) hinted at an upcoming bullish reversal, supporting the Channel’s claim. Finally, the relative strength index (RSI; purple graph) adopted a vertical trajectory, bringing the indicator from bearish to a neutral position at 50.

On-chain metrics support the bulls

As CoinChapter reported, Terra’s stablecoin UST became the third-largest stablecoin after cranking up the market cap to $17.5 billion, an over 9,500% advance year-over-year. The stablecoin’s success is partially responsible for Terra’s growing market cap, along with Anchor, a savings protocol atop the blockchain.

Moreover, the blockchain manager of Everstake, “the biggest decentralized staking provider,” commented on Terra’s growing adoption.

https://twitter.com/helen_everstake/status/1516114535811321860

Also read: Terra UST displaces BUSD, now third-largest stablecoin

The thread noted Anchor Protocol’s listing on Crypto.com, as well as UST’s growing adoption. Additionally, the Terra ecosystem partnered with THORChain (RUNE) in Q1, and the latter continues to expand its LUNA reserves.

$LUNA locked in @THORChain hits ATH after ATH. There is currently 252k LUNA in the liquidity pools with an equivalent value of $RUNE.

Are you smiling, anon? ☺️ pic.twitter.com/nkLvg1B0Ch

— FamiliarCow (@familiarcow) April 18, 2022

Also read: LongHash Ventures Partners With Terraform Labs To Accelerate Web3 Development On Terra Blockchain.

As a result, Terra became the second-largest layer-one platform by total value locked (TVL), displacing Binance Smart Chain (BSC) and Avalanche. Additionally, the ecosystem’s DeFi market share nearly doubled year-to-date, going from 7% on Jan 1 to over 13% on Apr. 19.