Terra (LUNA) Makes Ground on Bitcoin’s (BTC) Hold above $46,500

Key Insights:

• Terra (LUNA) bucked the broader market trend with a 3.06% gain on Monday.
• A marked increase in Terra’s total value locked (TVL) has supported the current uptrend.
• Technical indicators are bullish, with LUNA holding above its 50-day EMA.

On Monday, it was a bullish session for LUNA. Reversing a 1.94% loss from Sunday, LUNA rallied by 3.06% to end the day at $116.43.

Despite the bullish session, LUNA fell short of Sunday’s ATH of $118.03.

Bitcoin (BTC) Holds Above $46,500 to Support LUNA

It was the third day in the green from four sessions, with LUNA closing out the day at $116 levels for the first time.

Bitcoin’s (BTC) hold above $46,500 delivered LUNA price support on Monday. A continued upward trend in LUNA’s total value locked (TVL) has been the key to recent price action. At the time of writing, Terra’s TVL was $31.08bn, according to Defi Llama, a 1.51% increase over 24-hours.

The LUNA Guard Foundation’s (LGF) hold of more than $1.4bn in BTC has supported the surge in total value locked.

Using Bitcoin (BTC) as a reserve and a Bitcoin buying spree delivered the Sunday ATH. At the time of writing, the LGF Bitcoin Wallet was the twenty-ninth largest wallet, holding 30,728 BTC.

Last week, CoinDesk confirmed the LUNA Guard Foundation’s Bitcoin wallet to be

bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q.

LUNA Price Action

At the time of writing, LUNA was flat at $116.43. A bullish start to the day saw LUNA strike a new ATH $118.58 before easing back.

Technical Indicators

LUNA will need to avoid the day’s $115.13 pivot to make a run on the First Major Resistance Level at $118.89. LUNA would need the broader crypto market to support a move through this morning’s ATH of $118.58.

Another extended rally would test the Second Major Resistance Level at $121.30 and resistance at $125. The Third Major Resistance Level sits at $127.48.

A fall through the pivot would test the First Major Support Level at $112.68. Barring an extended sell-off, LUNA should avoid a return to sub-$100. The Second Major Support Level sits at $108.92.

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bullish signal. LUNA continues to hold above the 50-day EMA at $107.53. This morning, the 50-day EMA pulled away from the 100-day EMA. The 100-day EMA also pulled away from the 200-day EMA, bringing resistance levels into play.

Avoiding a fall to sub-$110 and through the 50-day EMA would support a run at $125.