Terra's LUNA price could 10x if history repeats itself
- Terra's Luna price has flatlined into $0.00000001 SATs. On-chain analysis shows trades are still taking place despite the fact.
- BitTorrent Token flatlined in August 2020 at $0.00000001 SATs before fully reversing and rallying 1,000%.
- Invalidation of the bearish trend could be the first breach above $0.00000001 SATs.
Terra's LUNA price shows staggering on-chain and technical comparisons to BitTorent Token's 2021 bottom, which induced an infamous 10x bullrun.
Terra LUNA price hints at nostalgia
Terra's LUNA price is unquestionably a disappointing situation for the crypto community. There's no point in beating a dead horse. Older Investors are at a devastating loss, and newer investors are dually suffering a blow from trying to buy a dip amidst the Armageddon-style sell-off in May 2022.
This article is meant to encourage and inform investors about a similar time in the crypto market when a particular cryptocurrencies' failure to 0 was entirely reversed. The LUNA asset is showing similar technichal and on-chain data to Bittorent Token's market bottom which catalyzed a 2021-10x rally
LUNA vs BTT - Technical & On-Chain Analysis
Terra's LUNA price currently trades at $1.58. Traders, however, should be aware that the LUNA price, like most cryptocurrencies, also trades against the BTC. If you look at the LUNA/BTC chart, you will notice that Terra has completely flatlined in price trading at 0.00000001 SATs. Additionally, the Relative Strength Index has also flatlined, showing no interest from bears and bulls alike.
Contrary to many traders' beliefs, the original LUNA/BTC( also known as LUNA classic) is still actively trading. On June 27, Santiment's On-chain analysis indicators showed an influx of $500 million worth of transactions. The total market cap briefly tagged $1.25 billion. The volume profile is currently averaging about 50% lower at $569 million. Algorithmic trading bots are likely scalping on minute price levels.
Santiment's Market Cap. Volume &LUNA/BTC Volume Profile Indicators
Crypto traders may recall when the BitTorrent token witnessed a similar sell-off in August 2020. The BitTorrent company also experienced a controversial news-related event that created a sellers frenzy from Mid August 2020 to January 2021. Traders lost hope as the BTT token traded at $0.00000001 SATs and flatlined on the Relative Strength index.
Bittorent token's market cap fell to $272 million (half of LUNA's current market cap) until, in February of 2021, BTT saw a similar one-day spike of volume, briefly bringing the market cap up to $ 1.18 billion. After days of consolidation, the subtle influx in volume became the catalyst for a 1,000% bullrun in just 60 days.
LUNA vs BTT - Technical & On-Chain Analysis
A wise mathematician once said, "the least probable outcome is the most likely to occur ." If you invested in the LUNA price at any time, we at FXStreet hold you in our thoughts. We're rooting for you.
Invalidation of the bearish trend is the first breach above $0.00000001 SATs. The breach could translate as the first buy signal of the future LUNA Bullrun targeting the $26. swing high, resulting in a 1,000 percent increase from the current LUNA price.
In the following video, our analysts deep dive into the price action of LUNA, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
