Terra’s LUNA token jumped 24% in the past 24 hours to lead gains among major cryptocurrencies in a broader market recovery.
LUNA reached weekly highs of $95.36 in early Asian hours before traders took profits and sent prices down by some $6. At the time of writing, the token was trading at $88, up from $50 last Thursday night, with nearly $3.9 billion worth of the tokens traded on various crypto exchanges in the past 24 hours.
The move came days after a similar 25% spike in the token on Friday. However, prices are down 13% from December's lifetime high of $103.
LUNA jumped to highs of $95 on Tuesday morning. (TradingView)
RSI, or relative strength index, readings hovered at the 71 level at the time of writing, suggesting further downside to the $86 level, where local support exists. RSI is a price-chart tool that calculates the magnitude of price changes. Readings above 70 show an asset is “overbought” and could see a correction, while under 30 suggest an asset is “oversold” and could see a price increase.
Some crypto market observers said LUNA’s strong fundamentals provide some of the buying pressure.
“LUNA outpacing its peers in the market today should not come as a shock,” said Alexander Mamasidikov, co-founder of mobile digital bank MinePlex, in an email to CoinDesk. “The coin is backed by a blockchain protocol that is inherently innovative and has the potential for massive utility and scalability, a feature both retail and institutional investors realize.”
Bitcoin traded above $44,000 after falling to as low as $34,550 last week. Analysts suggested the recovery came as Russia’s war against Ukraine bolstered retail demand for cryptocurrencies.
Cryptocurrencies regained the $2 trillion market capitalization on Thursday after gaining 11% in the market recovery, data from CoinGecko showed. The markets have added over $500 billion since last week’s lows of $1.5 trillion.