The price of Terra (LUNA) has smashed an all-time-high (ATH) of $107.14, rising nearly 10% in the last 24 hours, according to CoinMarketCap. LUNA has surpassed the previous resistance level of $103 to reach the new ATH as the LUNA Foundation Guard (LFG) accumulates Bitcoin. Currently, the LUNA is trading between the $103-$107 levels.
Terra (LUNA) Price Hits All-Time-High
LUNA, the governance token of the Terra blockchain, has skyrocketed nearly 50% in March, from $70 to $106.14. In the last week, the LUNA price has rallied 12% as the demand for LUNA continues to soar.
The recent rally has pushed the market cap of LUNA to about $38 billion, which is 1.70% of the entire crypto market cap. The rally came after the LUNA Foundation Guard, a non-profit organization supporting the Terra network, acquired $135 million worth of Bitcoin to support the UST stablecoin.
Recently, TerraForm Labs founder Do Kwon announced building Bitcoin reserves for stabilizing the price of its UST stablecoin to the US dollar. Do Kwon announced a short-term target of $3 billion Bitcoin reserves and a long-term target of $10 billion Bitcoin reserves.
The price of its UST stablecoin is currently pegged to the US dollar, and the market cap is $16.27 billion. The demand for UST is seen increasing as the new plan comes into force.
Following the announcements, the price of Bitcoin hits the month ATH, rising up to the $48,000 level, surpassing the resistance level of $45,000.
LUNA Price To Rally Higher
As the LUNA Foundation Guard (LFG) continues to buy Bitcoin for its long-term target of $10 billion, that could lead to an increase in demand for UST. Thus, moving LUNA tokens out of active supply, which could also increase the price of LUNA.
Moreover, analysts believe the increase in buying pressure could result in the price to reach the next level of $122. As the sentiment surrounding the LUNA price movement grows, the price could also increase with more double-digit gains.
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Source: https://coingape.com/terra-luna-smashes-ath-of-106-as-it-builds-bitcoin/