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Terra (LUNA) rallies as demand for UST is pushed by Anchor Protocol surges.
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LUNA’s relationship with UST means greater demand for UST drives LUNA costs up.
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LUNA is presently 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 steady cash that run on the Terra ecosystem, equivalent to TerraUSD (UST). Because the demand for UST grows, LUNA is burned, with the aim 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 worth goes.
Just 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 fee for LUNA has shot up, and by extension, the worth 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, presumably above $200 within the brief time period.
LUNA buying and selling in an ascending triangle
Supply: TradingView
After the rally that noticed it make new highs a number 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.
Abstract
LUNA is the one one of many main cryptocurrencies which can be rallying. Its value motion factors to a possible continuation of the rally that began a number of days in the past and will see LUNA make new highs within the brief time period.