LUNA, the native token of the Terra 2.0 blockchain, has experienced a significant price increase in the past week, thanks to the impressive rally of Bitcoin towards the $35,000 mark. According to data from CoinMarketCap, LUNA has surged by 13.96% in the last seven days, bringing relief to investors who have endured the token’s bearish performance in previous weeks.
The current bullish trend of LUNA has attracted a lot of attention, with analysts speculating that there could be more gains in the coming weeks. One crypto analyst, Captain Faibik, shared an intriguing bullish prediction on LUNA’s price trajectory. In a post on X on Sunday, Faibik, who claimed to not be a LUNA enthusiast, noted that the altcoin has recently broken a major bearish trendline and could potentially gain by 80-100%.
Traditionally, trendlines are used by traders to connect several price points together and provide insight into the potential direction of an asset’s price movement. When an asset’s price moves out of an established trendline, it can be interpreted as an impending price reversal. In the case of LUNA, it traded above $0.47 in the past week, breaching a bearish trendline that stretches back to January 2023 on the token’s daily chart.
LUNA has faced an overall negative price performance since the start of 2023, losing over 63% of its value in the last 10 months. However, if Faibik’s prediction proves true, the popular altcoin could be on its way to a remarkable recovery. At the time of writing, LUNA trades at $0.468 with a 0.70% decline in the last day. With an 80-100% price increase, this price could rise as high as $0.934 in the coming weeks. LUNA’s daily trading volume is currently down by 3.73% and valued at $48.67 million. It is ranked as the 117th largest cryptocurrency with a market cap of $263.92 million.
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In addition to the price surge, the Terra community has recently approved governance proposal 4790. This proposal aims to actively and aggressively develop the Terra ecosystem with resources provided by Terraform Labs. Under this proposal, Terraform Labs and Terra community partners will explore opportunities to utilize non-LUNA capital to drive the growth of the project’s economy. Additionally, 125 million LUNA will be staked by the Terra community council to encourage and reward active network engagement, provide essential services to support the ecosystem, and ensure equitable decentralization.
Overall, the recent price increase of LUNA has brought relief to investors and sparked speculation of further gains in the coming weeks. With the altcoin breaking a major trendline and the approval of a governance proposal focused on ecosystem development, LUNA seems primed for a potential recovery and expansion in its value.
