What’s Behind LUNA’s Rally, Could Its Price Decouple From Bitcoin?

The price of LUNA moves on its own as the crypto market trends to the downside. Terra’s native cryptocurrency records a 6.4% profit in the last week, as BTC, ETH, and BNB, move sideways. Related Reading | Mars Protocol To Launch On Terra, But Why MARS Has Seen A Massive Dump At the time of writing, LUNA trades at $89.35 with a 4.8% loss in the last 24 hours. Despite recent losses, the cryptocurrency is quickly moving up the top 10 cryptos by market. Currently, it sits at the 7th position after pushing down Cardano (ADA), Solana (SOL), and Polkadot (DOT). A report from economist Murray Rudd attempts to demonstrate a potential decoupling between Bitcoin (BTC) and Terra (LUNA). The number one cryptocurrency has a strong dominance over the entire market. Therefore, it is common for altcoins to trend lower of higher, to move in tandem, with BTC’s price action. Recently, LUNA’s price has possible start to breakaway from this pattern, it sometimes tends to move on its own direction regardless of Bitcoin. In order to support this thesis, Rudd examined the LUNA/BTC performance on different timeframes, and with different metrics. The economist represented this trading pair’s performance with different correlation zones. As seen below, the green area represents a high correlation, while the red to white area represent periods when LUNA is uncorrelated (red) or shows a low correlation (white) with BTC. Based on this chart, Rudd said:...