Bitcoin stash drives up the price of Terra LTV and LUNA
This is a fourth straight day in the green, with LUNA rebounding from levels below $90. This latest rise comes on the heels of bitcoin (BTC) returning to the $47,000 level. The LUNA Guard foundation has purchased over $1 billion worth of bitcoins to hold as reserves.
For LUNA, bitcoin’s use as a reserve and bitcoin’s latest rise supported Tuesday’s ATH.
Since the purchase of bitcoins by LGF, the total locked value (TVL) of Terra increased by over $10 billion. At the time of the BTC purchase, Terra’s total locked-in value was $17.49 billion. As of this writing, Terra’s TVL is $29.16 billion, according to Defi Llama.
Anchor (ANC) remains the dominant protocol, with a TVL of $15.17 billion, followed by Lido (LDO) with a TVL of $8.75 billion.
Over one month, Anchor’s TVL jumped an impressive 32.4%, and Lido’s by 13.2%.
What is Total Locked Value and why is it important?
The total value locked is the value of the crypto-assets deposited in a protocol Challenge. Over the past few months, TVL has generated considerable interest. Traders consider TVL as a key metric for measuring market interest and also the value of native tokens.
The market will look for a divergence between the TVL and the market cap of a token. Opportunities to buy or sell arise at the time of greatest divergence.
At the time of writing, LUNA was down 0.53% at $108.50. After a mixed start to the day, LUNA hit an early morning high of $109.11 before falling to $108.49.
LUNA will need to avoid today’s pivot at $105.17 to challenge the first major resistance level at $113.02. LUNA will need the broader crypto market to support a breakout from Tuesday’s high at $109.12.
Another extended rally would test the second major resistance level at $117.06 and resistance at $120. The third major resistance level is located at $130.00.
A drop through the pivot would test the first major support level at $101.09. Barring an extended sell-off, LUNA should avoid a return below $100. The second major support level is located at $93.13.
Looking at the EMAs and the 4 hour candlestick chart (above), this is a bullish signal. LUNA continues to hold above the 50-day EMA at $96.03. This morning, the 50-day EMA moved away from the 100-day EMA. The 100-day EMA also moved away from the 200-day EMA, bringing resistance levels into play.
If one avoids a drop below $100 and breaks through the 50-day EMA, one can consider aiming for the $120 levels.
LUNA will need to avoid breaking below $100 to maintain the uptrend.
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What You Need to Understand About Crypto Terra (LUNA) and Recent Rises – The ₿log
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