The prices of most cryptocurrencies are down over the past week. However, LUNA, the naïve coin of the Terra blockchain, has been rallying during that period.
The broader cryptocurrency market hasn’t been performing well over the past week. The prices of most coins are down by more than 10% during that period. However, some cryptocurrencies have been performing excellently in the past seven days.
LUNA, the native coin of the Terra blockchain, has been one of the top performers over the past week. The coin’s price has rallied by more than 11% over the last seven days, overtaking Dogecoin, Shiba Inu and Avalanche in the market.
LUNA is now the tenth-largest cryptocurrency by market cap and could be heading towards higher levels if it maintains the current momentum. The major reason for the price surge is the massive increase in its DeFi market.
The total value locked (TVL) on the Terra blockchain surpassed $12 billion earlier this week, making it one of the leading decentralised finance (DeFi) networks in the cryptocurrency space. It is only behind Ethereum, Solana, Binance Smart Chain and Avalanche.
Key levels to watch
The LUNA/USD 4-hour chart is currently the most bullish amongst the top 20 cryptocurrencies by market cap. The coin’s technical indicators suggest a strong bullish performance, and the rally could continue over the coming weekend.
The MACD line is above the neutral zone, indicating that LUNA is currently bullish. Furthermore, the RSI of 46 shows that LUNA is coming out of the oversold region and is starting to perform excellently.
If LUNA maintains its current momentum, then it could reach its all-time high price of $77 over the coming hours. An extended rally could see LUNA surpass the $80 resistance level before the end of the day. However, it would need the support of the broader crypto market if it is to surpass the $85 psychological level.