Terra Turns Bearish but Price Still Looking Better than Solana and Cardano
Amid larger market sell-offs and panic selling induced bear market while most of the top coins saw a sharp decline in price, some held better than others. Terra (LUNA) was one such coin that noted a 5% daily fall in price and a 1.5% weekly decline.
Terra’s Price Holding Well
Smart contract platforms like Cardano, Solana, Terra, and others were the star performers of last year noting high quarterly gains. Nonetheless, at the time of writing with the larger market looking rather bearish, most of the tokens followed BTC’s suit.
A sort of market dissociation that many of the aforementioned altcoins presented throughout last year couldn’t be seen at press time.
However, it was notable that of the top 10 coins by market cap, Terra’s LUNA token had lost the least amount of price. In addition to that, the 9th ranked altcoin still oscillated just above the long-term support-resistance line of $73.6.
That said, Terra’s trading volumes in the lower time frame had spiked alongside price losses which could be indicative of a panic-selling sentiment among LUNA HODLers.
However, the coin’s daily Relative Strength Index was still in the neutral zone noting a value of 49. Even though RSI made two lower tops as LUNA lost close to 10% price over the last five days, the coin holding a crucial support level was still a long-term bullish signal.
Collobs and Developments Paving Way
Constant collaborations, inter-platform integrations, and ecosystem-centric developments play a key role in aiding coins’ price trajectory.
A few reasons why Terra could be holding well were the formation of the Luna Foundation Guard (LFG) and the launch of RoboHero, a metaverse game for smartphones based on the LUNA token. Further, Binance too had completed LUNA’s integration into the exchange and activated deposits for the altcoin.
Additionally, Terra’s growth in total value locked in Defi had also grown over the last couple of months painting a macro-bullish picture for the coin in the long run. While TVL in the last 24-hours had dropped by 2.27% it still held well at the higher $17.9 billion mark.
Price Performance of Top 10 Smart Contract Tokens$LUNA is the best performing token in Q4 2021
— Terra Daily 🌖 (@TerraLUNADaily) January 21, 2022
For now, with the larger market still struggling further losses taking LUNA to the $62 mark could be expected. However, a push from buyers if a ‘buy the dip’ sentiment takes over could aid quick recovery for the token.