LUNA gained for the third successive day yesterday. Another breakout can see the alt exploring $70 amid increased stablecoins demand.
- Stablecoins demand sees LUNA on bullish actions.
- The $1 billion Terra private sale on Wednesday continued to support further upside.
- LUNA target the $70 value area.
The crypto market saw another choppy session on Thursday. The overall crypto market saw plummets as Russia invaded Ukraine. However, support emerged later as markets reacted favorably to new Russia sanctions.
Negative sentiments saw LUNA plunging to daily lows of $50.4 before climbing to the peaks of $66.03. Nevertheless, Terra ended the day with a 9.44% gain to $65.26.
LUNA Targets $70 amid Stablecoin News
News about LFG (Luna Foundation Guard) raising $1 billion on token sale hit wires on Wednesday. The LFG formulated a Bitcoin denominated backup for UST, Terra’s largest stablecoin. The Bitcoin reserve will guarantee the 1:1 tie with the dollar in UST redemptions.
An expected increase in UST demand would trigger more LUNA burn, a positive development for Terra’s native coin. Meanwhile, surged stablecoins demand as Russia attacked Ukraine contributed to LUNA’s uptick on Thursday. Though BTC and other alts struggled, stablecoins held grounds.
LUNA Technical Indicators
While writing this article, LUNA traded at $64.58, following a 1.04% drop. The altcoin should keep the pivot of $60.56 away for a massive run towards the crucial resistance at $71. However, the altcoin required broad market support to overcome Thursday’s peak of $66.03.
An extended rally by LUNA will see the second hurdle at $76 in play. Terra’s 3rd resistance zone stands at $92. Nevertheless, weakness around the pivot will see the altcoin exploring the initial support at $55. Moreover, continued retracement might take LUNA towards the support of $50. LUNA’s second support stands at $45.
The 4hr candle chart and the exponential moving averages highlight a bullish sign. Moreover, LUNA still holds beyond the 200-day Exponential Moving Average at $57. A bullish cross by the 50-dayEMA through 100-dayEMA will see LUNA navigating $70. Also, more narrowing of 100-day on the 200-day Exponential Moving Average would back the uptick to $70.
