Smart contract platform Terra’s native token, LUNA, has gained 50% in the last seven days and 124.2% in the last 30 days. With this rally, LUNA reached a record high of $97.88 on December 22, breaking out from the general trend in other altcoins and expanding its streak.
With the news of recent integrations and listing, a token burning seems to have helped the foundations of LUNA. LUNA, which introduced a new token burning mechanism with the Columbus-5 update in October, recorded a noticeable increase after the update.
The bulls were unable to sustain their pressure above $100 as Terra dropped as low as $83.55 after the record. But LUNA has taken action once again today and is currently trading at around $943.19.
This indicator shows that the rally is not over yet
The LUNA is consolidating near the $100 region, while the RSI indicator shows that the rally is not over yet. The relative strength index (RSI) is essentially an indicator that measures how an asset is performing in a certain time period. The RSI is used to capture overbought or oversold signals and provides the trader with “buy” or “sell” data.
On LUNA’s hourly chart, the relative strength index (RSI) sits between the neutral level of 50 and the overbought level of 70, indicating room for further growth. As long as the bulls hold the support, a quick rally is possible. A break above the $97.88 top can be expected sooner or later.
LUNA price gained momentum after forming a strong foothold around the support around $83 on Dec. 23. This helped the hourly RSI bounce back above the 50 neutral point towards the bullish zone.
Finally, it is worth noting that no single technical indicator is sufficient to make a price prediction. It is a matter of curiosity how LUNA will follow.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.