With the TerraUSD, the LUNA has a good margin of development
Many analysts believe that Terra is still capable of growing, especially now that it has expanded its business outside of Asia. Being in the top 10 of the CoinMarketCAp ranking by capitalization, the popularity of the Terra project is increased.
The strength of LUNA are the stablecoins of Terra, in particular the TerraUSD (UST). As you know, stablecoins have increased utility in the DeFi sphere. UST is the most coveted decentralized stablecoin; the Attached and theUSD coin being backed by funds managed by companies.
the LUNA is intrinsically tied to TerraUSD and acts as a stabilizer for this stablecoin. The system is based on an idea of equilibrium, one Token of the UST/LUNA pair being destroyed and the other being created simultaneously.
For example, if a large number of people buy UST and its price increases beyond one dollar, LUNA will be converted into UST tokens, which makes it possible to issue UST tokens and increase the quantity of tokens in circulation while lowering the price to $1.
When the UST is trading below one dollar, USTs are bought in the market and exchanged for LUNAs.
It is an algorithm that takes care of this and tries to be as responsive as possible so that the price of the UST never fluctuates and remains constant at 1 dollar.
Thus the interest in LUNA is closely linked to the adoption of TerraUSD.
The price of $100 is potentially an important support
Many investors regretted not buying LUNA when its price broke through $100 and hit all-time highs. However, this level could be the starting point for a new rally. Technical analysts will be sure to notice the pullback breakout pattern (from the $100 resistance) looming on the daily chart.
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