Terra Price Prediction 2024: LUNA Price Analysis

Key Takeaways

• Terra’s (LUNA) price has recovered since hitting an all-time low on July 5, 2024.
• The platform has been on a downward spiral since it was relaunched in May last year. 
• Our price predictions suggest Terra is mired in a long-term downward trend.
• Interested in buying or selling TERRA LUNA coin? Read our review of the best exchanges to buy and sell TERRA LUNA.

Terra (LUNA) cryptocurrency was launched in mid-2022 after the original Terra platform collapsed in May of that year and was subsequently rebuilt.

Terra was originally designed to support the TerraUSD (UST) stablecoin. However, in May 2022, UST lost its peg to the US dollar, triggering a catastrophic collapse that sent shockwaves through the entire cryptocurrency market, from which it has yet to recover.

Following the collapse, the original Terra blockchain was rebranded as Terra Classic (LUNC), while the new iteration of the platform took over the LUNA ticker symbol.

After a promising second half of 2023, hopes were rekindled that the revamped LUNA could reclaim its predecessor’s former glory, including a billion-dollar market capitalization and a top 10 spot among cryptocurrencies.

Terra’s positive performance was a welcome respite after a tumultuous period. In Aug. 2023, the platform was hacked, and its value plummeted to an all-time low just a month later. Although it staged a recovery later in 2023 and in 2024, the rebound was short-lived. Earlier in July 2024, LUNA’s value dropped to another all-time low.

Terra’s founder, Do Kwon, was arrested in March 2023 and subsequently charged with eight offenses by American authorities. Additionally, a Montenegro court has sentenced him to jail for forging official documents. However, his extradition to the United States has been temporarily halted, leaving his fate uncertain for the time being.

Meanwhile, Kwon’s Terraform Labs company filed for bankruptcy in January 2024.

On July 29, 2024, LUNA exchanged hands for $0.45

Let’s now take a look at our own price predictions for Terra, made on July 29, 2024. We will also examine the Terra price history and talk a little about what LUNA is and what it does.

Terra Price Prediction

Here are the Terra price predictions from CCN on July 29, 2024. It is important to note that price predictions, particularly in the cryptocurrency market, are subject to a high degree of uncertainty and should be treated with caution. The inherent volatility of digital assets can lead to significant discrepancies between forecasted and actual prices.

Our Terra crypto price predictions use two methods: fractals (mirroring movements and indicator readings) and the wave count.

Although Terra started trading in 2019, it has been in a downtrend since its crash in 2022, with a decline of over 99% from its all-time high. It’s worth noting that the Terra blockchain was split at the time of the crash, resulting in two separate entities: Terra Classic and Terra (also known as Terra 2.0). This analysis will focus on Terra (Terra 2.0) and will utilize the wave count method to predict its future price movements.

As a result, we will first use the wave count method.

In May 2022, Terra’s price reached a low of $0.00011 before bouncing back to a high of $9.97. However, the price has since fallen, and the shape of the bounce and subsequent decline suggests that the bounce was a correction, while the decline marks the beginning of a new five-wave downward movement.

Using the wave count method, it appears that Terra has completed a five-wave decline in the form of a leading diagonal. If this analysis is accurate, we can expect the LUNA price to begin an A-B-C corrective structure, followed by another lengthy decline. By applying the Fibonacci Time Zone tool, we can estimate that this entire structure will conclude in November 2027 at a low of $0.18.

The shape of the bounce and ensuing decline indicates that the bounce is a correction, while the decrease is the beginning of a new five-wave downward movement. If this is the case, Terra has completed a five-wave decline that took the shape of a leading diagonal.

To provide a range of possible outcomes, we will add and remove 20% from the target price, resulting in minimum and maximum LUNA price predictions.

By extrapolating the current trend of similarly shaped upward and downward movements, our Terra price predictions suggest that the price will reach $2.95 by the end of 2024.

However, this trend is expected to reverse, leading to a decline in price to $1.40 by the end of 2025. If this rate of decline continues, we can project a further decrease in price, ultimately reaching $0.12 by the end of 2030.

Terra Price Prediction for 2024

Our wave count Terra price prediction gives a target of $2.95 for the end of 2024.

Terra Price Prediction for 2025

Our wave count Terra price prediction gives a target of $1.40 for the end of 2025.

Terra Price Prediction for 2030

Using the daily rate of decrease, we arrive at a target of $0.12 by the end of 2030.

Terra Price Analysis

The 3-day time frame LUNA price chart shows a decline under a descending resistance trend line, which caused a breakdown from the $0.40 horizontal support area.

However, the price of Terra bounced in July (white icon) and reclaimed the horizontal area, validating it as support. At press time, Terra was attempting to break out.

If LUNA breaks out, it can surge to the next horizontal resistance area at $0.80. This fits with the bullish long-term price prediction from the wave count.

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Short-Term Terra Price Prediction

The short-term Terra price prediction hinges on the price of LUNA breaking out from the trend line. If this happens, the Terra price could be trading near $0.45 in the next 24 hours.

Projecting a similar rate of increase suggests that LUNA will confirm the breakout from the trend line later this week. Then, the price can reach the $0.80 area later by the end of August.

Terra Average True Range (ATR): LUNA Volatility

The Average True Range (ATR) measures market volatility by averaging the largest of three values: the current high minus the current low, the absolute value of the current high minus the previous close, and the absolute value of the current low minus the previous close over a period, typically 14 days. A rising ATR indicates increasing volatility, while a falling ATR indicates decreasing volatility.

On July 29, 2024, the weekly ATR for LUNA was 0.13, a sign of low volatility. The ATR has been steadily falling since 2022.

Terra Relative Strength Index (RSI): Is LUNA Oversold or Undersold?

The Relative Strength Index (RSI) is a momentum indicator traders use to determine whether an asset is overbought or oversold. Movements above 70 and below 30 show over and undervaluation, respectively. Movements above and below the 50 line also indicate if the trend is bullish or bearish.

On July 29, 2024, LUNA’s weekly RSI was at 41, a sign of a bearish trend. The RSI recently declined below 50.

Terra Market Cap to TVL Ratio

The Market Cap to Total Value Locked (TVL) ratio measures the valuation of a decentralized finance (DeFi) project by comparing its market capitalization to the total value of assets locked in its smart contracts. This ratio shows the project’s utilization and links the platform’s health to the value of locked assets.

A ratio above 1.0 indicates overvaluation because the market cap exceeds the value of assets used in the platform. A ratio below 1.0 indicates undervaluation because the market cap is lower than the value of locked assets.

On July 29, 2024, Terra’s Market Cap to TVL ratio was 42, a sign of overvaluation.

Best Days and Months to Buy Terra

We took a look at the LUNA price history and found the times when the price was at its lowest across certain days, months, quarters, and even weeks in the year, indicating the best times to buy LUNA.

Terra Price Performance Comparisons

Terra focuses on Decentralized Finance (DeFi) and the stablecoin ecosystem, so let’s compare it with similar projects.

LUNA Price History

Following that, let’s now take a look at some of the key dates in the Terra price history . While past performance should never be taken as an indicator of future results, knowing what LUNA has done can help give us some very useful context when it comes to either making or interpreting a Polkadot price prediction.

For clarity, we will be talking about the new LUNA, which was founded in May 2022. LUNA split from what is now Terra Classic on May 28, 2022. It reached a new all-time high the same day before closing at $4.94. The price of LUNA has trended downward since. 

2023: The year went well for Terra. A buoyant market saw it reach a high of $2.52 on January 21. Since then, though, it has fallen. It fell below the dollar in May, and things got worse in June. It collapsed from $0.93 to $0.72 in the wake of the United States Securities and Exchange Commission (SEC) suing the Binance and Coinbase exchange on June 5. 

Things went downhill even further on June 10, when Crypto.com’s announcement that it was suspending its American institutional activities saw it sink to $0.56. 

There was a small recovery to $0.73 on July 17, but that was that. It sank to a low of $0.38 on August 17 before trading at around $0.4265 on August 23. 

The following month saw it reach an all-time low of $0.378 on September 23.

2024: In March, the news about Do Kwon’s extradition caused the Terra price to increase above $1. However, Terra has fallen since, reaching a new all-time low of $0.30 on July 5.

Terra Supply and Distribution

Terra Market Cap

The market capitalization, or market cap, is the sum of the total number of LUNA in circulation multiplied by its price. On July 29, 2024, Terra’s market cap was $285 million, making it the 218th largest crypto by that metric.

From the Terra Whitepaper

In its technical documentation or whitepaper , Terra says it is a new thing, separate from Terra Classic.

It says: “Terra is an open-source blockchain hosting a vibrant ecosystem of decentralized applications (dApps) and top-tier developer tools.”

“Using proof-of-stake consensus and ground-breaking technologies like Mantlemint, Terrain, and Station, the Terra blockchain is one of the fastest chains in existence, giving users an unparalleled DeFi experience. As a permissionless, borderless economy, Terra enables next-generation financial products accessible to anyone with an Internet connection.”

Entrepreneurs Daniel Shin and Do Kwon founded the Terra blockchain in 2019.

Terra (LUNA) Explained

As previously mentioned, Terra was initially designed to support the UST stablecoin. However, following the collapse of the original LUNA, the Terra blockchain underwent a split.

The legacy chain, now known as Terra Classic, assumed control of the UST stablecoin but ultimately severed ties with it in September of this year.

Meanwhile, the new Terra chain shifted its focus to hosting decentralized applications (dApps) and is now supported by the new LUNA cryptocurrency.

How Terra Works

Terra uses a Proof-of-Stake consensus mechanism. This means that people need to verify transactions and add blocks to the blockchain-based on how much LUNA they hold. 

LUNA pays for transactions on the blockchain. People can also buy, sell, and trade LUNA on exchanges.

Is Terra a Good Investment?

It is hard to say. While it has performed well lately, it is in a downturn. Whether or not that is just a short-term thing remains unclear. 

It will also be worth seeing whether investors decide they can trust LUNA. After all, it is a spin-off from a crypto whose crash devastated the market. There may well be trust issues after people were let down by Terra’s previous incarnation. Also, there is a massive difference between the market cap and the Total Value Locked for Terra, implying massive overvaluation.

As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in LUNA.

Will Terra go up or down?

While the Terra crypto price predictions are largely negative in the long-term, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up. 

Should I invest in Terra?

Before you decide whether or not to invest in Terra, you will have to do your own research, not only on LUNA, but on other, related, coins and tokens such as Frax Share (FXS). Either way, you will also need to make sure that you never invest more money than you can afford to lose.

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