Here is why LUNA has been performing well despite bearish market
The cryptocurrency market is experiencing mixed performances heading into 2022, but LUNA has been performing well in recent weeks.
The broader cryptocurrency market has been underperforming in recent weeks, with the prices of most coins down by 10% or more during that period. Bitcoin is still struggling below the $50k level while Ether is defending the major resistance level at $3,600.
One of the best performers in recent weeks is LUNA, the native coin of the Terra blockchain. LUNA has rallied by more than 20% over the past month and is currently the ninth-largest cryptocurrency by market cap.
At press time, LUNA is trading at $86.46, up by more than 3% over the past 24 hours, making it the best performer amongst the top ten cryptocurrencies by market cap. LUNA’s rally comes as Terra became the second-largest decentralised finance (DeFi) blockchain, only behind Ethereum.
The total value locked on the Terra blockchain surpassed $20 billion last week, taking it to second place ahead of the Binance Smart Chain (BSC). UST, the stablecoin on the Terra network, also became the fourth-largest stablecoin in terms of market cap.
UST’s market cap is above $10 billion, and it is only behind Binance USD (BUSD), USDC and Tether (USDT) in terms of market cap. These factors contribute to LUNA recording huge gains in recent weeks and breaking into the top ten list of the leading cryptocurrencies by market cap.
Key levels to watch
The LUNA/USD 4-hour chart is one of the most bullish in the market at the moment, thanks to the coin’s recent performance. The technical indicators show that LUNA is performing excellently following its rally.
The MACD line just crossed into the positive zone, indicating a bullish trend for the cryptocurrency. The RSI of 52 shows that LUNA could soon enter the overbought region as the buying pressure increases.
If the market condition improves, LUNA could rally towards the $100 mark over the next few trading sessions.