The Terra price has been on a strong bull run for the past seven days. The LUNA token has been among the best performing altcoins alongside Uniswap, Tezos, XDC Network, Harmony, among others. The coin has jumped nearly 19% in the past week and more than 2% in the last 24 hours. The coin’s total market capitalization currently stands higher at $14.6 billion. It is the 13th largest cryptocurrency in the world, sandwiched between Avalanche and Binance USD.
What is Terra?
Terra Luna is the biggest dual-token platform in the world. It is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. The network is intertwined with two tokens with separate utilities. It has the LUNA coins on its blockchain and TerraUSD stablecoins on the Ethereum blockchain. Each TerraUSD coin is pegged to the US dollar on a 1:1 ratio, allowing users to conduct everyday transactions seamlessly without fluctuation fears.
Terra was founded in January 2018 by Daniel Shina and Do Kwon. However, its mainnet was officially launched in April 2019. The project was started to boost the rapid adoption of blockchain technology and cryptocurrency.
Terra will b in the limelight this week as its long-anticipated Columbus-5 network upgrade goes live on September 29. The upgrade will accelerate the burning of LUNA tokens hence reducing supply. It will also enable inter-chain communication between Terra and Solana, Cosmos, and Polkadot, enhancing its network further. It will also enable insurance for projects built by Terraform Labs.
Terra Price Analysis
The 2-hour chart shows that the Terra price has been under intense pressure for the past few days. At the time of writing, it was trading 7.08% higher at $37.11. It is trading slightly above the 25-day EMA and 25 DMA. Its Relative Strength Index (RSI) is steady at 53.
Therefore, with the new upgrade, I expect the Terra price to jump higher as bulls target its highest level at $44.5. However, a move below the key support at $31 will invalidate this view.