At press time, Terra [LUNA] was the seventh-largest crypto by market cap. It was trading at $96.37, after rising by 8.86% in 24 hours and rallying by 6.28% over the previous week. Why ought to this imply something particular to traders? Nicely, $96 will not be too removed from $100, which is a crucial psychological value.
When such ‘targets’ are crossed, new traders are inclined to make attention-grabbing strikes. That’s why it’s effectively value maintaining a tally of property approaching such milestones.
At press time, Solana [SOL], the sixth-largest crypto by market cap, was altering arms at $100.37. Whereas LUNA remains to be behind, its weekly rallies have been stronger than these of Solana’s. So, you may see why LUNA-holders could be excited.
Within the meantime, right here’s what the metrics should say.
The darkish facet of the moon
You’d suppose that traders could be over the moon [no pun intended] after LUNA’s rally. Nevertheless, Santiment information confirmed that weighted sentiment is in detrimental territory. You may suppose it is a unhealthy signal, however in actuality, sustained detrimental sentiment may simply be what LUNA must get to $100.
Particularly because it comes with none euphoric spikes triggering promoting stress.
Nevertheless, one issue to bear in mind is that despite LUNA’s rise in value, LUNA volumes have been falling. In any case, an asset’s rising value doesn’t essentially translate to extra volumes and transactions.
Nevertheless, a low-hype rally may once more work in LUNA’s favor.
Nonetheless, one concern is that TradingView’s Relative Volatility Index [RVI] got here in under 50 – an indication that volatility may development south within the close to future.
Actually, even at press time, LUNA was portray a pink candle. So, it won’t but be time for the asset to make its $100 house run.
Nevertheless, one ultimate level of concern is that whereas the value is – principally – going up, growth exercise on LUNA has been sliding since mid-April, regardless of recovering briefly.
Whereas costs are vulnerable to fluctuation, growth exercise is a fairly good measure of how a lot potential builders see within the challenge.
For that cause, it’s not simply sufficient to keep watch over LUNA’s journey to the $100-mark. Buyers also needs to care about how builders really feel a few challenge with a view to perceive its long-term potential.