Terra’s native token, LUNA, has been pushed by the big Bitcoin purchases. The LUNA/USDT has now bounced back and re-entered price discovery mode.
In the early hours today, Terra (LUNA )Price hit all-time high trading at $105.91, making a gain of 133% since it plunged below $45 in the month of January 2022. Terra’s LUNA has withstood the volatile market during the Russia-Ukraine war and in the last three weeks, LUNA’s price has seen a surge of 30%.
At the time of writing, the coin has surged by 7.95% and is trading at $102.65. The currency has also entered 8th position by market capitalization.
LUNA Price To Rally Another 20-40%
A popular analyst with Twitter handle @ali_charts evaluated the LUNA price trend and observed a break out of the symmetrical triangle. As per the crypto analyst, a close above $97.50 in LUNA price could send the altcoin to $122.
Another Crypto analyst with Twitter handle @CryptoFaibik also seems to be bullish on LUNA Price. He noted a bullish pennant formation in the LUNA price chart, which could trigger an upside breakout to push Terra 40% higher.
$135 Million Worth Of Bitcoin Purchased!
On March 28, the Singapore-based Luna Foundation Guard (LFG) added another $153 million worth of Bitcoin. This purchase now makes Terra Foundation’s total Bitcoin purchase more than $1 billion for 2022. Terra’s reserve has more than $10 billion worth of Bitcoin.
The above figure was confirmed by Do Kwon, the founder of Terra blockchain. The data provided also shows that the foundation’s address has made a total purchase of 27,784.96954740 Bitcoins.
Kwon has said that there is $3 billion in funds at Terra which is ready for a Bitcoin purchase that will back the UST stable coin. If Terra faces any short-term demand in terms of backing UST, the BTC purchased will come to the rescue. Wherein Kwon said “The reason why we are particularly interested in Bitcoin is that we believe that it is the strongest digital reserve asset. UST is going to be the first internet native currency that implements the Bitcoin standard as part of its monetary policy.”
Kwon also claimed his interest to increase the Bitcoin reserves size by $10 billion, which the technical infrastructure doesn’t support. Hence any such further purchase could land LUNA price towards the target of $122.
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Source: https://coinpedia.org/altcoin/terra-luna-price-hits-ath/