Altcoins

New Terra LUNA Suddenly Spikes 16%; What’s Happening?

Terra’s Luna token (LUNA) has gained 15% in the last 24 hours and is now trading at $2.11. The token is up 51.86% in a week.

The LUNA token, which was launched on a new blockchain called Terra 2.0 following the depegging of algorithmic stablecoin TerraUSD (UST), has quietly rallied since Jan. 9.

While the exact reason for the rally remains unknown, it seems that technical factors might have supported the latest rise. LUNA broke out of its month-long consolidation range on Jan. 9 and surpassed a key barrier that had hindered its price since November 2022.

Bulls leveraged this, coupled with the improving sentiment on the market, to push LUNA higher. Since Jan. 9, LUNA is set to mark seven out of eight days in the green. LUNA surpassed the key barrier at the $2 mark as its price jumped to intraday highs of $2.24 on Jan. 16.

Other factors

Also, other factors might have contributed to the rise. On Jan. 11, Terraform Labs (TFL), the entity responsible for Terra’s support and development, announced a victory in one of its legal battles as the class-action lawsuit filed against it and Do Kwon, Terra’s co-founder, alleging fraud was voluntarily dismissed in the U.S. Southern District of New York Court.

A crypto investor named Matthew Albright dismissed his complaint against Terraform Labs without prejudice.

Likewise, in a Jan. 14 tweet, Terra announced the completion of the first step toward building the interface for Web 3. It thereby announced the launch of Station, an interchain wallet that simplifies the often complex process of interacting with multiple blockchain networks.

Station has launched support for numerous chains such as Terra, Osmosis, Juno, Kujira, Carbon, HuaHua, Crescent, Terra Classic, Mars (testnet) and Sei (testnet). Many other chains will be added before February, as multiple integrations for chains such as Injective and Prism are actively being worked on.

   

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