Terra (LUNA) ranked 7th in the crypto-list by value during this publication. The altcoin saw remarkable reactions over the past week. While publishing this blog, LUNA traded at $89.52 after succumbing to a broad market downbeat. Nevertheless, the token eyes the $100 mark, its vital psychological zone.
New investors make fascinating moves whenever crypto crosses such targets. For that reason, we may need to watch LUNA as it seems ready to approach its crucial psychological level.
While publishing this content, Solana, the 6th-largest token by market capitalization, stood around $100. Though LUNA remains behind, its weekly gains were high than SOL’s. That can see LUNA holders exited. However, here’s what Terra metrics have for crypto fans.
The Other Side of the Coin
You may expect investors to eye beyond the moon following LUNA’s latest rally. Nevertheless, Santiment data indicated weighted sentiment inside a negative territory. Though that can mean a negative signal, a sustained ugly narrative could be what Terra requires to move towards $100 especially, since that appears without euphoric surges catalyzing selling momentum.
Terra volumes maintained downtrends even with LUNA’s latest price surges. Nevertheless, surging prices by an asset do not necessarily lead to increased transactions and trading volumes. Meanwhile, a low-hype uptick could favor LUNA’s price action.
However, TradingView’s RVI (Relative Volatility Index) below 50 remains a concern. The reading shows volatility might go south soon. Furthermore, LUNA painted a red candlestick in this publication. For that reason, it may not be that time for LUNA to target the vital $100.
One last concern is LUNA development activity has plummeted since mid-April, regardless of brief recoveries, despite the surging prices. While asset prices are vulnerable to fluctuations, development activity remains crucial to understanding the potential developers perceive in any project.
That way, market players should not concentrate on the journey towards $100 alone. Enthusiasts should consider how developers perceive the project to gauge its potential in the long term.
Also, the bearish sentiment in the overall marketplace makes LUNA’s upward journey challenging. The crypto spectrum struggles with bearishness. While publishing this blog, the overall market cap of all digital tokens stood at $1.78 trillion, reflecting a 4.38% loss within the past day.
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