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  • Terra price violates the $25 resistance level.
  • Players in the blockchain space show increased interest in Terra’s digital financial products
  • The MACD and RSI point to a sustained bullish momentum.

Terra price has jumped over 20% in price over the last 24 hours. This rally has caused LUNA rise above the $25 mark to record a new all-time high (ATH) above $26. Terra is currently ranked #16 on Coinmarketcap with a market capitalisation of $$10,481,513,878 which has also jumped by 19% the last 24 hours.

The LUNA demand witnessed since Sunday august 15 may be attributed to increased  investor adoption of Terra’s digital financial products.

Increased Adoption of the Terra Blockchain

LUNA is designed for the decentralized finance (DeFi) industry. The asset’s rally is an indication of increased investor confidence in the sector, particularly layer-1 protocols, ignoring the security vulnerabilities exposed by the DeFi hack witnessed last week.

Terra’s native token (LUNA) is an algorithmic balancing system that us used by stablecoins to peg their value to fiat currencies like the US dollar, according to Messaris data.

Like Solana, Terra is a layer-1 alternative to Ethereum, the Ether blockchain. It is believed that Terra’s rally is a reflection of increasing demand for higher scalability  in the market. This is shown by the recent craze about non-fungible tokens (NFTs) which has ensured the entry of cryptocurrencies into the mainstream market and the positive outlook resulting from expected delay of Ethereum’s imminent upgrade blockchain to a proof-of-stake (PoS) from a proof-of-work (PoW) blockchain.

LUNA’s price rally can be due to the planned Columbus-5 network upgrade that is expected to go live over the next month. This upgrade is expected to make all swap fees go to LUNA stakers, instead of being burned like they were before. Moreover, the fact that users can now utilise ether as collateral on the Anchor protocol, a lending and saving platform in Terra’s ecosystem has continued to create positive prospects for LUNA that will bolster it to new highs.

Terra Price Trades Above $25

Terra price prediction is bullish as it trades at $25.77 on crypto exchanges, with the 24-hour trading volume hovering above $1.85 billion. LUNA price has rallied 340% from the July 20 low at $5.51.

LUNA/USD Daily Chart

Terra Price Daily Chart

Note that Terra must close the day above the March 21 high around $23.15 to maintain the bullish bias. A daily closure above this level may trigger more buy orders as bulls seek to set new record highs.

Realise that the Moving Average Convergence Divergence MACD) indicator has a clear bullish outlook highlighted by its upward movement above the mean line. Moreover, the upward movement of the Relative Strength Index (RSI) in the overbought region adds credence to this bullish outlook.

On the flipside, the RSI shows that LUNA is extremely overbought, indicating that a correction might occur in the near-term. If this happens, Terra price might retreat towards the $16 support wall and the 200 and 50 SMAs before another recovery ensues.

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