Is Terra a Good Buy as it Consolidates?

Terra Luna price has been moving sideways in the past few days as the ongoing cryptocurrency winter continues. Luna was trading at $2.38, where it has been in the past few days. This price is slightly above this month’s low of $2.2181. It has crashed by more than 68% from its highest level in May this year. 

Is Terra a good buy?

According to CoinMarketCap, Terra has a market cap of more than $304 million, making it the 105th biggest coin in the world. On the other hand, Terra Luna Classic has a market cap of over $1.2 billion while Terra Classic USD has a market cap of over $358 million. 

Terra has been in a difficult period as investors focus on Do Kwon’s disappearance and grow concerned about the platform. For starters, Terra 2.0 is the upgraded version of Terra, which crashed in May after Terra USD lost its peg. 

Now, the developers are attempting to rebuild some of the existing projects that crashed in May. Some of the top apps in Terra’s ecosystem are Astroport, Hermes Protocol, Spectrum Protocol, Axelar Network, and Eris Protocol among others.

This rebounding, unfortunately, is happening at a time when the crypto winter is going on. Most coins have remained in a tight range, with Bitcoin remaining at 19,000 and the total market cap of all digital coins remaining below $1 trillion.

Terra Luna price forecast

The four-hour chart shows that the LUNA price has been in a tight range in the past few days. In this period, it has remained below the important psychological level of $2.50. The coin is consolidating at the 25-day and 50-day moving averages. At the same time, the coin’s Relative Strength Index (RSI) has moved to the neutral level of 50.

Therefore, Terra price will likely remain in this range for a while and then have a breakout in either direction. The key support and resistance levels to watch will be at $2.00 and $3.13, respectively.