Why is Terra going up: LUNA hits a new all-time high past $105
- Terra LUNA has reached a new all-time high of $105.
- LUNA is currently one of the top market performers over the past two years.
- The price of LUNA is rallying as the LFG continues to accumulate Bitcoin for UST reserves.
Terra (LUNA/USD) has been performing quite well over the past few months. LUNA has been among the best gainers in the market, and it has largely remained unaffected despite the recession witnessed in the crypto space during the first quarter of 2022.
LUNA has now broken to a new all-time high. At the time of writing, LUNA was trading at $102.70, according to CoinGecko. in the early trading hours of March 29, LUNA had created a new all-time high at $105.91.
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LUNA’s bullish sentiment grows stronger
LUNA has created a bullish sentiment in recent weeks since the founder of Terra, Do Kwon, announced a Bitcoin reserve plan. The price of LUNA has gained by 9.6% during the past 24 hours. This comes as the demand for LUNA continues to soar.
LUNA has been among the top-performing tokens for the past two years since March 2020. The token price is expected to continue with the bearish trend, given that both the market and buyer support are at par.
Now that the price of LUNA has overcome the resistance levels below $100, analysts believe that the buying pressure could push the price towards the next level of $122. With the positive sentiment surrounding LUNA growing, most traders are expected to go long on the token, and the token could explode with more double-digit gains.
Terra’s Bitcoin reserves
The Terra network is boosting the stability of its native stablecoin, UST. This stablecoin was originally backed by LUNA tokens, but this is now changing with the plans of the Terra Foundation to stabilize the price of UST using Bitcoin reserves.
The LUNA Foundation Guard (LFG) has plans to buy more than $3 billion worth of Bitcoin to boost the security of the UST stablecoin. The foundation has already commenced the purchase process for BTC.
The LFG wallet now holds $1.1 billion worth of Bitcoin. Do Kwon has confirmed that additional purchases will be made until the target is achieved. Following this announcement, the price of Bitcoin has been rallying, creating support for the entire market. Bitcoin’s price is now past the critical resistance level of $1.1 billion.