In recent times, the native token of the Terra 2.0 blockchain, LUNA, has experienced a notable surge, following Bitcoin’s remarkable rally towards the $35,000 threshold. Over the past week, data from CoinMarketCap reveals that LUNA’s price has soared by 13.96%, providing a much-welcomed relief for investors who have withstood the token’s bearish performance in the preceding weeks.
LUNA’s current bullish form has gained significant attention, leading several analysts to speculate about potential further gains in the coming weeks. One such analyst, Captain Faibik, shared an intriguing and bullish prediction regarding LUNA’s price trajectory with his sizable following of 67,000 on X. Despite not being a vocal advocate for LUNA, Faibik highlighted that the altcoin recently shattered a crucial bearish trendline, potentially paving the way for an 80-100% rally in its value.
Trendlines play a vital role in technical analysis, serving as connectors between various price points and offering insights into potential price movements. When an asset’s price breaks beyond an established trendline, such as LUNA’s recent ascent, it often indicates an impending reversal in its price trajectory. LUNA has faced a significant downturn throughout 2023, experiencing an overall negative performance with a staggering 63% loss in value over the past ten months. However, if Faibik’s prediction holds true, LUNA could undergo a remarkable recovery.
As of now, LUNA is trading at $0.468, witnessing a slight decline of 0.70% in the last 24 hours. However, if LUNA were to experience an 80-100% surge in price, its value could potentially rise as high as $0.934 in the coming weeks. Although its daily trading volume has decreased by 3.73%, amounting to $48.67 million, LUNA’s market capitalization stands at $263.92 million, earning it the rank of the 117th largest cryptocurrency.
Interestingly, the Terra Community has recently approved governance proposal 4790, which aims to stimulate the active and aggressive development of the Terra ecosystem through the resources provided by Terraform Labs. This proposal grants Terraform Labs, in collaboration with Terra community partners, the opportunity to explore the utilization of non-LUNA capital to fuel the growth of the project’s economy. Through this newly approved initiative, a total of 125 million LUNA will be staked by a Terra community council. This strategic move seeks to incentivize active network engagement, provide essential services to support the ecosystem, and establish equitable decentralization.
LUNA’s impressive performance amid Bitcoin’s rally has sparked optimism among both investors and analysts. Captain Faibik’s bullish prediction adds fuel to the fire, suggesting a potential 80-100% gain in LUNA’s value. While the altcoin has faced significant challenges in recent months, breaking its bearish trendline may be a positive sign for its future prospects. As the Terra Community aims to bolster the growth of the ecosystem through its development proposal, it remains to be seen how LUNA will fare in the increasingly competitive cryptocurrency market.