© Reuters
Investing.com – The cryptocurrency is down about 13% since yesterday, but it still holds a nearly 200% week-on-week gain, making it by far the best-performing Top 100 cryptocurrency on that horizon as of the start of the week .
Recall that saw its native token LUNA and its stablecoin TerraUSD (UST) collapse in May, which had led most observers to believe that we would hear more about this crypto and that it was going to disappear.
But like a Phoenix rising from its ashes, LUNA has posted a total gain of more than 300% since the beginning of September, after having consolidated for several weeks at very low levels.
It is at this point important to note that LUNA also trades under the LUNA2 ticker on several exchanges, and that Terraform Labs, the company behind the Terra project, has split the old chain into Terra Classic (LUNC) and Terra LUNA 2.0 (LUNA/LUNA2).
Terra Classic is the original version of the Terra blockchain, while LUNA 2.0 was created as part of a project turnaround strategy by Do Kwon, founder of Terraform Labs. As part of this, Kwon and his team periodically airdrop LUNA2 tokens to users affected by Terra’s collapse.
LUNA/LUNA2 began to be distributed on September 9, the day when many events occurred in the Terra ecosystem, and the rise of the crypto largely accelerated.
Indeed, Luna Classic (LUNC) adopted governance proposals that day to add a 1.2% tax on all its on-chain transactions. In other words, the proposals will permanently remove 1.2% of LUNC’s supply from each on-chain transaction, a feature likely to steadily reduce supply and potentially support the price.
The September 9 surge also came a week after Terra passed the proposal to conduct its second airdrop of over 19 million LUNA tokens until October 4.
Technical thresholds to monitor on Terra (LUNA)
From a graphical point of view, we note that the Terra (LUNA) is facing a potential support on the psychological threshold of $5. The 50 Fibonacci retracement of the rise since last Friday at $4.8 will then be the next support ahead of $4/4.15, the 61.8% retracement.
On the upside, last week’s high at $7.71 will be the first potential resistance to consider, ahead of $8. Then, the key threshold of $10 could be quickly targeted.