Terra (LUNA) could hit $100 in the coming weeks as it forms a classic bull pennant pattern.
After a strong move upward, bull pennants appear as price trends within a triangle pattern. Many analysts anticipate the instrument will finally break above the triangle’s top trendline and resume its upward price surge.
The profit target of a bull pennant structure is also generally equal to the length of the preceding price increase. It names as the flagpole.
The breakout happens when the bullish pennant trendline converges at the top, thus the optimum profit target is over $22. This puts LUNA at approximately $100. LUNA increased nearly 66 percent in less than three weeks, becoming the tenth-largest cryptocurrency by market cap. Overtaking Dogecoin (DOGE) and Avalanche (AVAX), digital assets now represent around 1.18 percent of the $2.3 trillion cryptocurrency market.
On December 5th, the LUNA token price hit an all-time high of $77. 4,444 traders followed after Chiron Partners, a Hong Kong VC firm, launched in December. For decentralized finance (DeFi) and meta-linked non-financial token (NFT) initiatives using the Terra blockchain, he announced on the 8th that he raised $50 million.
Chiron Partners COO Jake Cormack noticed Terra’s growth potential. He chose it as an official public ledger after the recent adoption of blockchain. The Columbus-five update ensures increased scalability and cross-chain interoperability.
Terra’s Ever-developing Listing
Specifically, the Terra environment includes an ever-developing listing of fiat currencies. As well as a set of solid cash connected to the mining token LUNA. LUNA serves as a governance token for seignories and volume, as a volatility absorber, and as a reward trap.
Conversely, while UST drops below $1, the protocol exchanges the solid coin for LUNA to keep the price. The $50 million Chiron fund and the Columbus5 update have generated anticipation of increasing deflationary pressure on LUNA.
Two days later, LUNA rose nearly 13%, despite large corrections in Bitcoin (BTC), Ether (ETH), and most other digital currencies.
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