Why Does LUNA Continue to Rise Against the USDT

Seven-Day Terra (LUNA) to USD Chart

“If bulls defend the 20-EMA, the possibility of the continuation of the uptrend increases. The pair could then rise above $80 and later rally to the overhead resistance zone between $84 to $87. Conversely, if the price turns down and slips below $70, the pair could drop to $64.”—Cointelegraph.

This is a 162% increase since August 2021. Many crypto “experts” point to its rising demand, real-world applications, and stable fundamentals as reasons for its upward move.

In spite of cryptocurrency volatility recently, Terra (LUNA) seems to be headed “to the moon.” Many are looking for a $100 LUNA sometime this week. Long-term, some are even saying $500 per coin. Is it possible? I wouldn’t bet the farm on it, but stranger things have happened.

It probably wouldn’t hurt to buy some if it dips. Just remember, don’t use money you cannot afford to lose.

Also, Cointelegraph states, “Three reasons for the surge in interest include LUNA’s rapidly expanding ecosystem, the addition of a wrapped form of Ether (ETH) to Anchor protocol, which brings Ether staking rewards to the Terra ecosystem, and the protocol’s tokenomics, which help control the circulating supply of LUNA and UST.”

As you can see in the above chart, it has moved past the $90 mark, but can it hold it. What is driving this upward move? Certainly, there’s the “herd mentality” to account for some of that move, while Investopedia calls it the "herd instinct."

I remember reading a book about investing in the stock market, and the author told a story about Native Americans in the old West who hunted buffalo with their bow and arrows. Since the buffalo’s skin was so tough, it took a direct hit from close range to kill one of these massive beasts.

They needed a better method to feed and clothe the tribe, so they herded the buffalo close to a cliff, and then the entire tribe would start whooping and screaming, causing the buffalo to stampede away from the noise and over the cliff.

His advice warned against following the herd. Most investors lose money following the herd upward because, at some point, the herd will decide to take profits.

This could leave you and others who got in at or near the top holding a declining commodity with no chance to realize a profit, at least near-term. Of course, there’s the possibility that it keeps climbing, but the odds are against it.

What is LUNA?

“Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements.”—Coin Market Cap.

Many International Monetary Fund (IMF) projects use it to draw currency “baskets” for Special Drawing Rights (SDR) for various countries. There is even an IMF special draw token (SDT). Some believe IMF loans have kept countries like Mexico, Cyprus, and Greece out of bankruptcy.

Therefore, when the IMF uses LUNA to transfer funds in the form of loans or grants to countries, it could help move the price upward.

What’s more, anyone with a need can create a Terra coin tied to their fiat currency. Suppose you are doing business with a Korean company. In that case, you can send Korean Won by transferring your currency to Terra ship it to the Korean company who can easily change it to Korea Won. That’s one of the things making it so attractive.

Take a look at this 5-minute explainer video from YouTube

Terra LUNA explained in under 5 minutes. (cryptocurrency)

This video is a very clear and concise explanation of how it works.

There is also a movement within the Terra ecosystem to allow borrowers to use “wrapped” Ethereum (bETH) as collateral for loans.

#LUNA $LUNA #Crypto

LUNA Price Data from Coin Market Cap

1 MAR ‘22— “The live Terra price today is $87.40 USD with a 24-hour trading volume of $5,070,570,448 USD. We update our LUNA to USD price in real-time. Terra is up 23.68% in the last 24 hours. The current CoinMarketCap ranking is #7, with a live market cap of $32,863,486,970 USD. It has a circulating supply of 375,996,521 LUNA coins and the max. supply is not available.” —Coin Market Cap.

LUNA All-Time to USD Chart

As you can see in the above chart, it stayed around $1.00 per coin from its launch in April ’19 until about one year ago, when it started climbing. It reached nearly $23.00 per coin on 23 March '21, only to pull back, primarily due to what experts believe was profit-taking, and the Wormhole hack, which caused the UST to lose its peg to the USD.

It dropped back to around $6.50 and continued to trade in the $6.00 to $8.00 range until August 21, when it broke out to the upside once again.

Final thoughts about Terra’s LUNA Token

The continued use of this stable coin to send and receive other currencies worldwide will likely drive its price higher.

Its rising demand, real-world applications, stable fundamentals, and its use by the IMF and other agencies to support refugees from the Ukraine war are reasons for its upward movement.

Whether you should follow the herd and invest in LUNA is up to you; just be careful not to use money you cannot afford to lose.

DISCLAIMER: This article is for entertainment and informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. I am not a financial adviser, and you should consider anything I write as informational and friendly banter to show you what is possible if you invest your money in these vehicles. However, there are no guarantees. Consult a financial professional before making any significant financial decisions.

Stephen Dalton is a retired US Army First Sergeant with a degree in journalism from the University of Maryland and a Certified US English Chicago Manual of Style Editor. Also, a Top Writer in Nutrition, Travel, Fiction, Transportation, VR, NFL, Design, Creativity, and Short Story.

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