Terra (LUNA) Price Analysis: Will LFG Announcement Power Buyers?

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Terra (LUNA) Price Analysis: Will LFG Announcement Power Buyers?

Terra’s LUNA experiences weakness in line with the bearish sentiment weighing on the wider crypto sector as leader Bitcoin slides lower under the key

Terra’s LUNA experiences weakness in line with the bearish sentiment weighing on the wider crypto sector as leader Bitcoin slides lower under the key $40,000 mark and keeps investors wary about entering buy positions across the board. At the time of writing, LUNA/USD is trading at around $78.46.

It’s been a while since the mood in the market turned strongly bullish as investors focus on the possibility of the US Federal Reserve tightening its monetary policy sooner than planned to offset soaring inflation. For the past few months, many traders jumped into digital assets as they were being considered as a hedge against inflation. With the Fed’s mood soon turning to hawkish, the outlook for cryptos has dimmed, although several experts believe that it could be temporary as rising adoption of the technology can spur investor confidence in the coming weeks and months.

Can LUNA Foundation Guard (LFG) Power Investor Confidence in Terra’s Ecosystem

While the bears have control of the market, Terra’s LUNA is unable to make new highs, although it has performed better and registered smaller losses than several of its peers, thanks to strong fundamentals. One of the biggest developments in the ecosystem is the announcement of the LUNA Foundation Guard (LFG) to support the growth of the decentralized economy and development of open-source technology.

LFG will focus on improving the price stability of TerraUSD (UST), the blockchain’s leading stablecoin, even as it works on developing the Terra ecosystem further by prioritizing the development of DeFi projects. In addition, the non-profit organization will also look at ways to increase awareness about blockchain technology via educational programs, grant allocation and funding product development.

Terraform Labs, the firm behind the development of the Terra blockchain, will be gifting LFG 50 million LUNA tokens which will serve as the initial funding which will help bootstrap its stabilizing reserves and grant framework. The LFG is welcoming proposals for improving or building dApps on Terra or any other application which will advance efforts towards realizing a completely decentralized economy.

LUNA/USD Technical Analysis

The CEO of Real Vision. Raoul Pal, listed Terra’s LUNA as one of the most promising altcoins for 2022. He also sees the year to be bullish on the DeFi front, one of the strongest points for the Terra blockchain and its UST stablecoin, which will drive further value into its native token LUNA.

Taking a look at the H4 price chart of LUNA/USD, we find a bearish bias amog most of the moving averages as well as the MACD. On the other hand, the momentum indicator reveals some buying interest in the market.

Terra’s LUNA is trading just under the pivot point at $80.16 but a comfortable distance from the immediate support at $72.35. Additional bearish pressure, however, can see this level being tested instead of LUNA rising past the PP.

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