LUNA is outpacing Bitcoin in Gains: Is it a good time to buy? – CoinJournal

Choose your language:
LUNA outperforms the market as it closes the week higher by over 40%.
 LUNA gains were driven by the formation of a UST reserve worth $1 billion in BTC.
 LUNA needs to break through key weekly resistance if the uptrend is to continue.
Terra (LUNA) is a blockchain that is used for the launch of algorithmic stable coins. It has come to dominate in this space and is now among the top DeFi platforms in terms of Total Value Locked.
Like the rest of the market, LUNA has been pretty volatile over the last couple of days but has regained upside momentum in the last 48-hours. In fact, it was one of the biggest gainers of the past week, closing higher by over 40%.
In the past week, the markets were hit with the news that Luna Foundation Guard (LFG) was creating a Bitcoin-denominated reserve. This will act as an extra layer of stability and security for Terra USD (UST).
LFG also announced that it had raised $1 billion that will go towards building the Bitcoin reserves. The best part about it is that the coins will be locked for 4-years. This news has led to an increase in investor confidence in UST, which in turn translates to higher demand for LUNA.
Analysts are already responding positively to the move to create a Bitcoin reserve. According to Matthew Dibb of Stack Funds, the move will lower the price fluctuations of the UST.
Source: TradingView
On February 26th, 2022, Terra (LUNA) was trading at $74.34 and was up by 13% in 24-hours.
LUNA has been on a strong uptrend since February 24th, 2022. It is currently trading just below the $77.17 weekly support level.
If buying volumes increase and LUNA pushes through the $77.17 resistance, then it could test prices above $90 before the end of February.
On the flip side, if LUNA turns bearish and breaches the $70.11, 23.6% Fibonacci support, then it could end the month below $65.
Keep updated with our round the clock and in-depth cryptocurrency news.
Unsub anytime
No SPAM ever!
After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.
Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services.
Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.
CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.
When trading in stocks your capital is at risk.
Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.

source