Key Insights:
- Terra’s LUNA has spiked by 10% in 24-hours making a new ATH.
- The altcoin breached its previous high of $104.85 made on March 09.
- Luna Foundation Guard (LFG) purchasing BTC has partly aided LUNA’s price rally.
Tuesday took off on a bullish note for most cryptocurrencies as BTC established itself above the $47,500 mark. However, Terra’s native token LUNA stole the show crossing $105, hitting a new all-time high as bullish sentiment among investors rose.
LUNA fell to as low as $48 in early February, but the altcoin has gained close to 118% price since then. While price gained momentum, LUNA’s relative strength index (RSI) was still not in the overbought zone at press time.
Although under the overbought zone, RSI could present more potential for price growth in the near term since the LUNA market wasn’t overheated. However, buyers dominated sellers as the more significant sentiment appeared to be bullish for the token.
LFG’s BTC Buying Spree
Terra is a platform that allows developers to build decentralized applications and create custom blockchains. LUNA is one of the two native tokens on the Terra network.
The Singapore-based Luna Foundation Guard (LFG) reportedly purchased $135 million worth of Bitcoin this week. LFG holds roughly $1.32 billion worth of bitcoin as an additional layer of security for UST – Terra’s decentralized dollar-pegged stablecoin.
Bullish sentiment for LUNA has risen over the past month largely due to LFG’s demand for bitcoin which has led to a recovery in the past week.
Notably, LUNA’s price gained close to 86,200% from all-time lows of $0.121798 in March 2020, making the altcoin one of the best performing tokens in the past two years.
At press time, LUNA had a market capitalization of $36.39 billion and traded at $102.87, noting an 8.17% daily rise in price.