The Terra (LUNA/USD) price has made a strong comeback in the past few days as demand for the coin jumps. LUNA is trading at $80, which is about 28% above the lowest level this month. The rebound brings the total market capitalization of the coin to over $28 billion, making it the 10th biggest cryptocurrency in the world.
Terra makes a comeback
Terra is a blockchain project managed by Terraform Labs, a South Korean company. It is a layer-1 platform that has a platform where developers can build applications in all industries like non-fungible tokens (NFT) and decentralized finance (DeFi).
Terra is well-known because of the stablecoins it runs. TerraUSD is the fourth biggest stablecoin after Tether, USD Coin, and
Terra works in a different way than other cryptocurrencies, which makes it highly popular in South Korea. For example, if you want to buy a flight ticket, you could use CHAI, a decentralized application built using Terra’s platform.
To do this, you will need to mint your Terra stablecoin. As you do this, you will be burning a required number of LUNA tokens. After you buy the ticket, Terra will generate a transaction fee that is shared among LUNA delegators.
Terra, which was built using the Cosmos SDK, has become a popular platform for DeFi developers. According to DeFi Llama, there are now 17 apps developed on its platform that have a total value locked of over $18 billion. Some of them are Anchor, Lido, Astroport, and Terraswap.
Terra price prediction
The four-hour chart shows that the LUNA price crashed to a low of $62 this year as the cryptocurrency sell-off accelerated. This price was along the 61.8% Fibonacci retracement level. It has now bounced back and is slightly above the 38.2% retracement level. Also, the price has moved slightly above the 25-day and 50-day exponential moving averages (EMA).
Therefore, there is a likelihood that the Terra price will maintain a bullish trend as bulls target the 23.6% retracement level at about $87.92. On the flip side, a drop below the key support at $75 will invalidate this view.