Several investors remain bullish on Terra’s LUNA 2.0 price despite struggles to recovery
- LUNA 2.0 price struggling to recover as skepticism increases after the LUNC fiasco.
- The controversial Terra token not offered for trading across Korean exchanges, but some investors are still bullish on LUNA 2.0.
- LUNA 2.0 price posted 9% losses, analysts have a bearish outlook on the Terra token.
UPDATE: LUNA 2.0 price keeps trying to recover after the Terra Ecosystem Revival Plan 2 was launched. The new Terra tokens traded as high as $25 after the airdrop, but then collapsed below $10. Since then, LUNA price has been trading on a tight range between $6 and $8. Terraform Labs founder and CEO Do Kwon, meanwhile, is being investigated by South Korean authorities on multiple fronts. According to the former officials of the US SEC, though, the Terra boss might be able to escape prison, as proving the intent of defrauding might be challenging for prosecutors. Kwon might instead face civil penalties and fines from regulators based on the amount of losses caused to investors, which could cost the Terraform Labs CEO tens of billions of US dollars.
Despite LUNA 2.0 price drop, some investors in the crypto community remain bullish on Terra’s new token. Other experts raised concerns about a potential colossal crash of LUNA 2.0, similar to what happened with the LUNA Classic and UST.
Also read: This bullish setup on Terra’s LUNA 2.0 price might catch doubters by surprise
LUNA 2.0 price nosedives, witnesses massive volatility
LUNA 2.0 price dropped 9% overnight, and Terra’s new token continues to witness extreme volatility. There is growing skepticism over LUNA 2.0’s sustainability as investors expect a similar outcome as LUNA Classic (previously known as LUNA) and TerraUSD (UST) crash.
The rising volatility in LUNA 2.0 has rekindled concerns among analysts and investors. Korean cryptocurrency exchanges have not offered any trading services supporting Terra’s new token, LUNA 2.0 in response to these concerns.
A Seoul-based economist said,
Financial authorities cannot protect investors in the cryptocurrency industry, as there are no regulations or laws to do so. It is more like gambling that comes with an inherent risk.
LUNA 2.0 token can be traded on major overseas exchanges like Binance, OKX, Kraken, Bybit.
Cryptocurrency exchanges support LUNA 2.0 listing
Jesse Powell, CEO of Kraken, defended LUNA 2.0 listing citing client demand. Powell revealed that switching cost for users is low and people tend to want all cryptocurrencies on one platform for their capital efficiency, synergies and convenience. Powell believes withdrawing support for one cryptocurrency could cost the exchange an entire account. Powell further emphasized that listing a cryptocurrency does not mean the exchange endorses it.
Binance CEO Changpeng Zhao (CZ) recently voiced skepticism around the relaunch of the Terra blockchain and LUNA 2.0. Nevertheless, Binance is actively supporting Terra’s airdrop and Do Kwon’s revival plan, and LUNA 2.0 is listed for trade on the exchange’s platform.
South Korean authorities investigate Do Kwon and Terraform Labs
Despite the launch of Terra’s LUNA 2.0, South Korean authorities have continued an investigation into Terraform Labs, and CEO Do Kwon. Authorities are investigating potential price manipulation across multiple cryptocurrency exchange platforms and the listing process of LUNA.
Former Terra employees reveal Do Kwon was behind the failed stablecoin project Basis Cash. The algorithmic stablecoin was launched in 2020 and quickly flamed out, plummeting from $1 to $0.30 in January 2021.
Despite LUNA 2.0 price volatility, experts are bullish
@DarkCryptoLord, a leading cryptocurrency analyst and trader, believes LUNA 2.0 price offers a profit making opportunity. The analyst believes the setup is ideal for a quick trade.
Low iq strategy = best strategy.
— Dark Crypto Lady (@DarkCryptoLord) May 31, 2022
Tho I might shit on $LUNA and its community from time to time, I will never shit on profit making opportunity.
Once again thanks for zhe gains pic.twitter.com/Vkb2WV4uLB
@MartiniGuyYT, crypto YouTuber and founder of Crypto Saving Expert, told his 133,000 subscribers that he bought a small bag of LUNA 2.0 token to “play the game” and the analyst is keen on making scalp trades with the ongoing price swings.
$LUNA 2.0 IS UP 50% THE PAST HOUR!!
— That Martini Guy ₿ (@MartiniGuyYT) May 30, 2022
I just bought a small bag to play the game for a few days, try making some nice scalp trades with these huge price swings
You can buy $LUNA 2.0 and trade it here https://t.co/82dF1ROKcC
Akash Girimath, crypto analyst at FXStreet, believes it is a good bet to buy LUNA 2.0 token after the airdrop. Despite the price volatility and wild swings, the analyst has identified a bullish setup in the LUNA 2.0 chart. 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.
