The Terra price has fallen slightly after rising to a record high. The token has formed a break-and-retest pattern on the 4-hour chart. We explain why the price could continue to rise in the short term.
The price of Terra (LUNA/USD) is hovering near its all-time high as the ecosystem expands and after the recent launch of Columbus-5. The LUNA token is trading at $45, which is slightly below its all-time high of $49. The token has a total market cap of over $17 billion, making it the 11th largest cryptocurrency in the world.
DeFi ecosystem expands
Terra is a blockchain project built to expand. To some extent, the network resembles Ethereum in helping people build decentralized applications (DAPPs). LUNA is like ETH, meaning it is the original token for the ecosystem.
In recent months, Terra has gone from “nothing” to one of the largest blockchain projects in the world. It has achieved this by attracting more developers into the ecosystem. Axie infinity price prediction 2023 is positive. For example, data collected by DeFi Llama shows that 8 DeFi platforms were built using its network.
While the number of these DeFi platforms is smaller than other projects such as Polygon and Avalanche, the total value locked (TVL) is significantly higher. DeFi platforms built in Terra have a TVL of more than $11 billion, making it the fourth largest after Ethereum, Binance and Solana.
The largest DeFi platforms in Terra are Anchor, Lido, Mirror and TerraSwap. These four have a TVL of more than $1 billion, with Anchor having a dominance of about 38%.
The Terra price also increased due to the recent upgrade from Columbus-4 to Columbus-5. This upgrade introduced several important dimensions to its ecosystem. Some of the major changes introduced were simplifying the treasury module logic, switching dividends to oracles, and prioritizing mempools. Visit Renovato.io Crypto website for enough information. At the same time, Terra has launched a $150 million grant program to attract additional developers.
Terra price forecast
The 4-hour chart shows that the LUNA price has formed a break-and-retest pattern. This happened after the price jumped above the previous all-time high of $44.57. It then tested this level again which is a bullish catalyst.
The bullish outlook is still supported by the 25 and 50 day moving averages, while the Relative Strength Index (RSI) is forming a bearish divergence pattern. Therefore, due to the break-and-retest pattern, there is a possibility that the price will continue to rise in the near term.