Terra Begins LUNA Burning, Why It Could Target $140
November 11 2021 - 2:00PM
NEWSBTC
Terra (LUNA) has surged during the past week after a period of
consolidation as the network has begun burning the supply of its
native token. As of press time, LUNA trades at $51,16 with a 5%
loss in the daily chart. Related Reading | Why The Terra Ecosystem
Delayed A Major Mainnet Upgrade For Late September Yesterday,
before Bitcoin and major cryptocurrencies dropped from new-all
times highs, LUNA started a breakout to the upside and seem ready
to breakthrough the resistance at $54. However, the rally was
spoiled by the flash crash and LUNA was rejected near the mid area
around its current levels. The rally seems drive by the
implementation of 3 major upgrades on the Terra mainnet. As NewsBTC
reported 3 weeks ago, the network was ready to introduce the
Colombus-5 and Wormhole v2 with the Inter-Blockchain Communication
(IBC) protocol upgrade. The first of these 3 improvements COL-5 was
set to implement a deflationary mechanism for LUNA. In addition,
the upgrade was designed to increase Terra’s interoperable
capabilities. In the past year, tokens with a burning supply system
have seen great appreciation. For example, Binance Coin (BNB) rose
from the low $50 and reached an all-time high above $600. Ethereum
and its recently integrated EIP-1559 is another example. The
network changed its fee model to burn a portion of ETH with each
transaction. LUNA could follow a similar path with $80 as a
potential reasonable target for LUNA in the short term but could
record further gains above $100 and join Solana (SOL) as one of the
top performers in 2021. Investor Daniel Cheung has been very
bullish on Terra (LUNA) and its ecosystem due to its potential to
disrupt the stablecoin sector. Upon launch of the burning
mechanism, Cheung said: Thesis for $LUNA is playing out; $140 price
target in the short term still holds. Long term, Terra is one of
the few protocols with the potential to be in the trillion-dollar
market cap range given TAM for stable coins is infinite. 🔥has
started Parabolic pic.twitter.com/Yi1FSTZjSz — Do Kwon 🌖
(@stablekwon) November 10, 2021 Terra (LUNA) Started Its Moon
Phase? With Bitcoin moving sideways after the crash, the altcoin
market could take the opportunity to diminish the BTC dominance.
For LUNA this could translate into price discovery. Related Reading
| Why Terra (LUNA) Will Reward Users With New Community Bounty
Program To achieve this goal, LUNA must reclaim $54 and smash
through the resistance at $56 with a potential short-term price
target at $60. Cheung added the following on LUNA’s potential to
enter the top 10 by market cap, the current phase of the bull run,
and the asset’s fundamentals: It is important to learn to zoom out
on the charts. $LUNA & $SOL are amazing buying oppts here,
bullish structure still very strong and story continues to get
better here. The run is not over yet and both will go parabolic
soon. Best assets always have bids.
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