Terra (LUNA) to Target $90 After Testing Resistance at $80

Key Insights:

• LUNA hit a Saturday high of $79.25
• Wednesday’s $1bn LUNA private sale and stablecoin demand continued to support LUNA
• A January high of $92.67 is the next target price

While it was a mixed day for the broader crypto market on Saturday, LUNA continued to March towards its January high of $92.67.

Recovering from an early morning low of $71.73, LUNA rallied to a late high of $79.25 before easing back. Following a 12.04% jump on Friday, LUNA rose by 6.74% to end the day at $78.07.

Hitting a new February high, the next target remains January’s high of $92.67.

Stablecoin Demand Brings $90 Into Sight

Market sentiment towards stablecoins and last week’s Luna Foundation Guard private sale continued to deliver support.

On Wednesday, news hit the wires of Luna Foundation Guard (LFG) raising $1bn in a private token sale. The LFG created a Bitcoin (BTC) denominated reserve for Terra’s largest stablecoin, TerraUST (UST).

Geopolitical risk and Russia’s invasion of Ukraine have also delivered market uncertainty, supporting stablecoins.

LUNA Price Action

At the time of writing, LUNA was up by 0.65% to $78.58.

Technical Indicators

LUNA will need to avoid the $76.4 pivot to make a run on the First Major Resistance Level at $81.0. The broader crypto market would need to support a breakout from Saturday’s high $79.25.

Another extended rally would bring the Second Major Resistance Level at $83.9 and $90 levels into play. The Third Major Resistance Level sits at $91.4.

A fall through the pivot would bring the First Major Support Level at $73.5 into play. In the case of an extended sell-off, LUNA could test support at $70. The Second Major Support Level sits at $68.8.

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bullish signal. LUNA continues to hold above the 50-day EMA currently at $62.0. We have also seen the 50-day EMA pull away from the 200-day EMA overnight. A further widening of the 50-day EMA from the 200-day EMA would bring $90 levels into play.

A bullish cross of the 100-day EMA through the 200-day EMA would also support a run on $90.

LUNA will need to avoid a fall through to sub-$70 and the 50-day EMA at $62.