Continue HODL and wait for LUNA to reach $ 50, or get off now?

In the 6-day period from September 29th to October 4th, the price of LUNA recovered significantly, rising almost 50% from $ 33 to $ 49.5.

However, the price later corrected and LUNA lost almost 30% of its value. Altcoins recovered on October 19 and 20, but continued to consolidate shortly afterwards.

In fact, at the time of writing, LUNA is currently trading at $ 42.82.

LUNA 4-hour chart | Source: Tradingview

Time to Take Profits?

Short- and medium-term HODLers constantly ask themselves “Is now the right time to get out?”. They usually buy tokens during the halving and then wait for a local high to take profits. So LUNA players are wondering what to do in this phase: HODL or exit?

A look at the state of the indicators and fundamentals will help us answer the above question.

The foundations of the terra ecosystem are far stronger. For example inter-blockchain communication (IBC) has just gone live on Terra’s mainnet. Once the relay’s channels are in place, users can transfer tokens between the Terra and Cosmos ecosystems.

A number of bridges in space have tried to combine isolated blockchains into a networked ecosystem. Terra, which is focusing on this aspect in the current phase, will be able to attract new users to the space. Therefore, this step will benefit Terra’s ecosystem in the long term.

If everything goes according to plan, Terra will essentially establish a niche for itself in the future.

In addition, even the indicators are in pretty good shape. The circulating supply on LUNA increased in October, which means that market participants are circulating more tokens.

To a reasonable extent, this means they are buying more tokens – a pretty good sign for the price.

Circulation delivery from LUNA | The source: Messari

LUNA’s market cap is currently hovering around the 3% mark – pretty good compared to the top 20 altcoins. The rate of inflation has been below 5% for more than 2 weeks, suggesting that LUNA’s long-term hold value is increasing over time.

Immediate obstacles

On the price chart, LUNA is facing resistance at $ 47.79. If the price breaks it soon, the path to $ 50 will be pretty smooth.

Conversely, if it fails, the price falls back into the support area around $ 40.85. If bears take control at this point, it is not surprising that LUNA is heading back to the $ 35.67 mark.

Hence, with enough profit and liquidity, HODLers can exit the market according to the latest predictions.

However, others may HODL for a while longer. Mainly because at this point the indicators are positive and the fundamentals are getting stronger.

In summary, LUNA will continue to increase in the near future.

You can see the LUNA prices here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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