Analysts argue Terra's LUNA 2.0 is dead, price could fail to recover
- Based on Bloomberg's report from prominent market watchers, Terra's new chain's token LUNA 2.0, could continue declining.
- Experts believe the future of LUNA 2.0 is bleak, and several discouraging factors imply the new Terra token is dead.
- Analysts have a bearish outlook for LUNA 2.0 and predict further correction in the Terra token.
Based on a recent Bloomberg report, four prominent market watchers believe Terra's comeback with the new chain could be a pathetic attempt at best. LUNA 2.0 price could fail to recover from the slump.
Terra's LUNA 2.0 struggles to recover from price drop
Bloomberg offered a report on Terraform chain's comeback with the new token LUNA 2.0 without the algorithmic stablecoin UST that suffered a depeg. Bloomberg's recent report on the Terra token features commentary from prominent crypto experts who believe Terra's comeback is bleak. Several issues around Do Kwon's role in the new token and its governance are acting as discouraging factors.
Mati Greenspan, the founder and CEO of Quantum Economics, a crypto analytics platform, believes that LUNA 2.0 has no future; it was designed as a means for investors who lost funds in the initial Terra crash and had no means to recoup their losses.
Greenspan was quoted as saying:
LUNA 2.0 was never meant to survive.
Riyad Carrey, a research analyst at Kaiko, argues that LUNA 2.0's downfall is tied to the competition with Ethereum-alternatives Solana, Avalanche and Ethereum. These projects do not have the burden of a failed token; the outstanding lost feature is the loss of algorithmic stablecoin UST.
LUNA 2.0, therefore, doesn't have a sister token, and the absence of a feature that was fundamental to its preceding chain, LUNA Classic (LUNC), makes it difficult for the token to compete with others like SOL, AVAX and ETH.
Khaalelulla Baig, founder and CEO of CoinBasket, believes LUNA 2.0 holders are eager to drop the token, seeing as Do Kwon, the CEO of Terraform Labs and the founder of sister tokens LUNC (previously LUNA) and UST, has lost his credibility. Baig argues,
Luna has no future. Building the new Luna within the existing community will not make any sense now.
LUNA 2.0 price continues decline
LUNA 2.0 price witnessed a double-digit decline in its price overnight. The Terra token has suffered a consistent decline over the past few weeks, and LUNA 2.0 price is 85.9% below its all-time high.
Analysts have evaluated the LUNA 2.0 price trend and predicted a further decline in the Terra token. While the launch of Terra's new chain was expected to push LUNA prices higher and aid investors in recouping their losses, the price experienced bearish pressure. The asset has broken down following a descending triangle in the chart.
LUNA price has dropped below support at $3.3 and continues to lose market value.
LUNA-USDT chart
FXStreet analysts argue LUNA 2.0 price has 100% bullish potential since the Terra token has hit its bottom. For more information, watch this video:
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
