Terra is a blockchain for creating a decentralized finance infrastructure where you can earn interest on stable coins. You can spend cryptocurrency easily with merchants and replace the banking needs with a decentralized DeFi protocol.
It uses an elegant seigniorage model to minimize the volatility of fiat currencies. It does much more than issuing stable coins. Smart contracts host a DeFi ecosystem that connects Cosmos IBC protocol. The aim is to take the place of a credit card network, bank, and payment system with a rewarding decentralized blockchain experience.
LUNA was founded in 2018 to create a global payment network with the ultimate goal of disrupting the traditional banking system by using DeFi infrastructure.
It seeks a decentralized future where people buy and sell products with digital cash and merchants accept stable coins. Besides that, users get interest on unused cash by keeping it on the Terra application.
They want to build this future with two significant components. Terra issues algorithmic stable coins, and LUNA is used to stake and govern Terra. You have to buy and stake LUNA from crypto exchanges to participate in these use cases.
At the time of writing, LUNA was trading around $85.27. The price is retracing back to the support level. Though it is forming a green candle today, the price may fall up to the level of $76. After that, the price may consolidate within a range.
On the daily chart, the MACD line and RSI indicators are bearish, and candlesticks are in the lower line of the Bollinger Bands. Most of the technical indicators are bearish in the short term. Check out Terra LUNA coin price prediction to know the future price levels and performance of the token.
However, the coin is bullish in the long term. It has been forming higher highs and higher lows, which means if the LUNA coin’s price falls, it will face resistance around $70. Interestingly we can see two big red weekly candles in the last two weeks.
As an investor, you should find the right investment opportunity, but sadly it is not the ideal time for investment. If you already have the Terra (LUNA), you should hold it for a few years, and you may get a good return.