A popular crypto analyst says one of Ethereum’s top rivals appears to be unstoppable.
In a new strategy session, the host of financial education YouTube channel InvestAnswers discusses the hot streak that decentralized stablecoin issuer Terra (LUNA) has been on over the past two months, and highlights the project’s structural links to Bitcoin (BTC).
“There’s no signs up stopping LUNA. It’s up 166% in 60 days.
Again, the master stroke of [Terra co-founder] Do Kwon making a Bitcoin-backed algorithmic stablecoin. I believe it will be a game changer, I’m very bullish.
I’m not sure why he stopped [buying Bitcoin]. I think he’s waiting for a dip. But just look at that chart, it is a beast and I don’t see it stopping.”
Regarding the theoretical model he laid out on March 24th for how Terra could reach a staggering valuation of $80,000 per token by using Bitcoin as collateral, the analyst says,
“It’s making all the steps in the right direction, and it’s tracking pretty closely with where we are.”
Terra currently is down by 8.52% and priced at $107.31. LUNA reached a monthly high of $119.01 on April 5th.
The trader is also looking at another top Ethereum challenger, Solana (SOL), and the recent moves in its BTC trading pair.
“It was rejected exactly off the 200-day moving average.
This SOL-to-Bitcoin ratio is pretty crucial to follow. I did think the bottom was at 0.0022 [$94.26], but it did fall down to 0.002 [$85.69].
Then it just skyrocketed [from late March into early April] because of a huge amount of money flow, and now we are getting rejected off, but I do think we’re going to bounce up from there.”
Solana is down 10.76% at time of writing with a valuation of $111.41. SOL’s monthly high of $142.11 came on April 2nd.
As for Ethereum, the trader tells his 428,000 YouTube subscribers that leading smart contract platform appears stuck in a narrow price range and the available data doesn’t give him a clear picture of where it’s headed next.
“If you look at the last five days for Ethereum, we have bumped up above $3,500 a couple of times but it just falls right back down again.
It’s in this super-tight range, $3,450 to $3,460, up to $3,520 and $3,560. It’s just up and down, up and down. It’s weird, it’s unusual. It tells me something’s got to give.
Looking at all the bearish call option and put option action out there, it makes me think I don’t know where this is going to go.”
At time of writing, Ethereum is down 3.66% and trading for $3,179.
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