Terra (LUNA) Looks for Buyers Around $63 After Hitting an ATH

Terra (LUNA) didn’t follow the strong bearish path of the recent crypto market’s bloodbath witnessed over the weekend and hit a new all-time high around $78.29.

The price rallied from the lows of November around the $40 neighborhood and thus consolidated on the bullish side with a golden crossover of the 50-period and the 200-period simple moving averages.

Now, the 50 SMA is acting as a dynamic support across the board, helping to fuel the bulls’ strength in the near term.

DeFi Popularity Skyrockets

From the broad picture, Terra has a quite significant weekly gain of over 60%, although the price retraced further over -7.42% during Monday. Now, LUNA is exchanging hands at around $63.07.

The growing DeFi hype keeps bolstering the buying interest across DeFi-linked altcoins in the crypto sphere, together with the dominance seen of such coins in the ecosystem.

In fact, according to data from Defilama, Terra’s interest among institutional investors had skyrocketed despite the decrease in the Total Value Locked metrics in several DeFi coins.

In a nutshell, the supply across the top whales that hold LUNA has also significantly performed positively, thanks to the increased interest in the brand-new Terra’s stablecoins such as TerraUSD (UST) TerraCNY, TerraJPY, TerraGBP, TerraKRW, TerraEUR, and TerraSDR.

DeFi Coin Struggles to Find Bullish Momentum

In the short-term outlook, as the coin’s price is currently riding a retracement, once it picks up new bids at the current stage, LUNA could break above the all-time highs around $76 to rally towards the $80 zone.

However, once the 50 SMA gives up in favor of the sellers, Terra could plunge towards the $52 handle, which coincides with the 200 SMA in a first degree, followed by the psychological level of $40.

At the H4 chart, the RSI indicator keeps trading the neutral territory’s waters, implying that the coin keeps its directionless mood in the near term.