Way back in Q1 2021, one of the popular assets Dogecoin, displayed a similar price action. After years of consolidation, the price raised high by more than 800% in a single day. Presently, Terra’s (LUNA) price is also displaying a similar rally by surging close to 300% in the past few hours.
Dogecoin also had raised without any major network upgrade or announcement but had huge support from Tesla CEO, Elon Musk. Currently, Terra also has no such bullish trigger nither any mentions from the prominent figures within the space. But still, the price rose by nearly 286% without any news hovering around the asset.
Therefore, the price rise may be a result of a euphoric market that may crash in the coming days ahead.
With the recent rise, the price has now surged close to its previous levels that it trade soon after the re-branding. Presently, the LUNA price is testing one of the crucial support at $7 and is expected to resume a firm upswing after a brief consolidation. With the next leg up, the price may eventually regain the double-digit target figure & secure levels above $11.
Despite the asset having recorded one of the most profitable days, the reason behind the rise is pretty misty. The volume rose monstrously by more than 3000%, recording levels above $8 billion in the past 24 hours. On the other hand, the sister tokens, Terra Classic(LUNC) & TerraUST (USTC) have plunged significantly.
Therefore, in the Euphoria market, the steep rise or plunge, usually does not have any base, but only flows by sentiments. Therefore, if the sentiments flip, the Terra (LUNA) price tends to fall hard.
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