Van de Poppe Looks Into Terra (LUNA) And Draws Two Bullish Target Levels
A leading crypto analyst and trader, Michaël van de Poppe, is looking into Terra (LUNA) and where it could be heading as we move towards 2022.
The Terra protocol’s native token LUNA holds together a suite of decentralized stablecoins. Terra itself is used for e-commerce payments and decentralized finance (DeFi) services.
In a recent video, the analyst shared with his 156,000 YouTube channel subscribers that Ethereum competitors have shown incredible strength among other successful layer-1 altcoins.
“LUNA is one the strongest assets at this point in the cryptocurrency markets. Not only LUNA but also AVAX has been doing really great. MATIC has been doing great.
All those layer-1s and projects that are comparable to layer-1 are doing great and are showing strength, while Bitcoin is showing weakness overall.”
Van de Poppe starts by looking where LUNA is in the current market cycle before predicting the next leg up.
“When we’re looking at the price action we can say, ‘Okay, Terra/LUNA is already accelerating quite fast. Where is it in the current cycle?’
Most likely, we are somewhere in the stage of the previous run. Such a consolidative period should be very comparable to the price action that we’re going to make, or what we’re seeing at this point, in which the price has been continually pushing upwards even more.”
During the February 2021 consolidation, LUNA was trading between $5 and $8 and then shot up to $22 in March.
As for the price targets for 2022, the trader draws two key levels he believes LUNA can reach.
“If we are finishing such a corrective period, we could be looking at a Fibonacci extension, which we can derive from the previous low and previous high, in which we can start targeting two levels… $125 and we can target $200, as the next impulse waves based on the Fibonacci extension as long as the trend stays upwards.
If that is the case, we could be seeing this run.”
At the time of writing LUNA trades at $90.57 with 13% profit on the daily chart and 55% profit on the weekly chart.
Terra deployed several improvements on its mainnet in the past months. These included Colombus-5, Wormhole v2, and an Inter-Blockchain Communication (IBC) protocol.
The first of these upgrades could be the fuel that has triggered LUNA’s rally as it implemented a burning mechanism into the network. Effectively, this upgrade has turned LUNA into a deflationary asset that will continue to see buying pressure into the future.
Per a report by Delphi Digital, the Terra ecosystem has also benefited from the deployment of Astroport, an Automated Market Maker (AMM). The protocol is yet in an early phase but has already seen over $1 billion in capital inflows.
