Terra (LUNA) Takes Off 15% Following Announcement, Top 10 Cryptocurrency

Investing.com – With a solid 15% gain over the past 24 hours and stability over a week, the cryptocurrency is by far the best performer in the top 10 crypto on Wednesday morning.

The bullish sentiment on this cryptocurrency seems largely linked to an announcement from the Luna Foundation, which closed a billion-dollar private sale in an effort to keep the stablecoin TerraUSD stable.

Terra announced the sale through its (NYSE:) Twitter account yesterday, noting that the fundraiser involved the sale of $1 billion worth of LUNA tokens, the native cryptocurrency and reserve asset of Earth.

According to Terra, this is one of the biggest sales ever in the cryptocurrency industry. Several venture capital groups participated in the sale, including Jump Crypto, Three Arrows Capital, DeFiance Capital, Republic Capital, GSR and Tribe Capital.

Proceeds from the sale will be used to establish a TerraUSD (UST) currency reserve denominated in bitcoins (BTC). This reserve aims to maintain a 1:1 parity between the stablecoin and the US dollar.

Do Kwon, the Founder and CEO of Terra Labs, noted, “A decentralized economy needs decentralized currency. And decentralized currency needs decentralized reserves.”

Terra (LUNA): What are the technical thresholds to monitor?

From a graphical point of view, we note that the Terra (LUNA) is approaching the resistance zone of $60, currently at $56.5. Above this threshold, it is then the 100-day moving average, currently at $64.68, which could be targeted.

On the downside, the $50 zone, which recently acted as support, is still to be considered as an important support, especially since the 100-day moving average is currently in this zone.

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