Terra LUNA Project Review and LUNA Price Predictions 2021

Why LUNA? Major advantages/features

Terra – LUNA is a project by Terraform Labs, founded by Daniel Shin and Do Kwon. The duo had an ambition for rapid blockchain and cryptocurrency adoption by focusing on ease of use and price stability.

Terra makes it possible to create stablecoins pegged to a broad range of fiat currencies the Terra UST and Terra KRW – South Korean won. Terra currently has about twenty stablecoins in its ecosystem.

Terra is developed as the backend of different products and applications developed by Terra Labs and Terra Alliance.

You’ll have to burn an equivalent amount of LUNA, Terra’s native coin, to mint a stablecoin like the UST on the Terra blockchain network.

Conversely, UST can be burnt to redeem a proportional amount of LUNA from the Terra blockchain network.

Terra maintains a one-to-one peg for stablecoins via an algorithm that tracks the supply and demand of the stablecoin and adjusts it accordingly. 

In an interview with Breaking Banks, Brett King, and Ajit Tripathi Terra’s co-founder & CEO Do Kwon stated that the network currently handles up to a thousand transactions per second at an average block time of about six seconds.

Future of LUNA Token

• The Mirror Protocol

Terraform Labs built the Mirror Protocol, which runs on the Terra blockchain. It allows for token minting that mirrors different assets and stock prices.

Now that’s a game-changer. With access to the internet, anyone can gain exposure to the price action of US equities, commodities, and ETFs e.g. stocks like Tesla, Amazon, and Gamestop.

The Mirror protocol introduces the traditional stock market into the crypto space as synthetic assets, known as mAssets.

Minting mAssets requires a deposit of Terra’s UST stablecoin as collateral, which is also on the Binance Smart Chain.

• Anchor Protocol

Terra announced a partnership with Solona, Cosmos, and Web3 Foundation in June ’20. The partnership births  Anchor.

Anchor is a savings/lending protocol where users can get stable interest rates on their crypto deposits, as Anchor does all the work behind the scene, staking them on different proof-of-stake blockchains.

• Kash.io

Kash.io is a financial product by  Intellabridge Technology Corporation that leverages Terra’s Mirror protocol, bringing traditional assets like stocks in the form of synthetic assets to a global user base.

• Terra – Axelar partnership brings interoperability to the Terra ecosystem – link
• Terra – Hummingbot partnership brings Automated Market Maker – AMM Arb to the Terra ecosystem – link
• Terra – Flip Side crypto partnership for on-chain anlytics – link
• Terra launches Project Surge, a community focused way of growing the Terra ecosystem – link
• Delight Labs Launched Terraswap an AMM DEX on the Terra blockchain – link

LUNA Token 2020/2021 Road map 

• Terra will be working on its Columbus-5 network update in 2021 with no specific date in sight.
• Terra will also be hosting DeFi Connected, a virtual Hackathon on May 5th through 7th.

Most of Terra’s 2020 milestones have been completed, and there is currently no set road map for 2021 at the time of this publication.

Competition analysis with the most valued competitor

LUNA is currently ranked at the twenty-third position by market cap ahead of its primary competitor Reserve Rights RSR token, rated at number ninety-two according to coinmarketcap.com. 

While the RSV stablecoin from the  RSR token is pegged against the US dollar, Terra offers stablecoins pegged to the US dollar, Mongolian Tugrik, South Korean Won, and international monetary funds.

LUNA Token 2021 Price Levels and Projections

• LUNA/USDT Weekly Chart Analysis

Chart by TradingView

The LUNAUSDT from a weekly chart overview found resistance at 22.4 after signaling a regular bearish divergence at the level.

It is only logical for buyers who bought at the beginning of the trend (23 November’ 20) to lock in some profit and scale back into the uptrend at subsequent correction zones.

Notice how the LUNA bulls added to their long positions on 01 March ’21 after a hidden bullish divergence for an additional 338% price hike after an earlier 2253% from the trend start price of 0.3492.

Now, at press time, the weekly chart again signals a bear-trap candlestick pattern that corresponds with a second hidden bullish divergence on 12 April, where we project a 500% price surge.

• LUNA/BTC Weekly chart

Chart by Tradingview

The LUNABTC flags a bullish confluence of events in the form of a hidden bullish divergence and a bear-trap candlestick pattern, similar to the LUNAUSDT.

The current chart formation confirms that Bitcoin holders will resume their interest in the LUNA token, sending the price against the BTC to new record highs at 0.0007.

• Luna Token Yearly price predictions

It is worth mentioning that the LUNA token, like some top altcoins, is currently doing better than Bitcoin, which is a common trend in a bull market.

We should see new record highs in price as the alt-season persists. We have to be mindful of the BTC vs. USD because altcoins usually get hammered more in a bear market once the music stops.

However, the LUNA project is robust with an excellent use case and the perfect team behind it and will stand the test of time. With that being said,

We expect the LUNA price to hit a 5X target this year, but we’ll start to secure profit from the 3X mark.

Is the LUNA token a Good Investment for the future? 

Since the beginning of the bullish campaign, for the first time, the relative strength index – RSI (LUNAUSDT) on the weekly chart exits the overbought area to signal a more intense parabolic price explosion.

The uptrend remains valid as long as the RSI does not drop below level-30.

So yes, the LUNA token is an excellent investment for the future. However, you may want to deploy multiple strategies to maximize your gains on your way up, which involves allocating a portion of your portfolio for a long-term HODL and a fraction of that for short term long futures trade.

Allocating a fraction of your portfolio to long the LUNAUSDT futures will allow for locking in profits at opposing bearish divergence setups in the future while still holding the prominent spot position.

• LUNA token Market Cap projections and demand/supply scenario 

The market cap of the LUNA token can 4X from this point bring it to the top-20 position. 

The primary reason is that Terra Labs is the only blockchain ecosystem that’s working on solving the problem from the time-value-money principle, which shows that if you hold the US currency over a period of time, the interest rate is lower than the inflation risk, consequently devaluing your holdings, thereby eroding the value of house hold savings.

HODLing the LUNA token is an excellent investment to hold into Q4 2021.

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