This bullish setup on Terra’s LUNA 2.0 price might catch doubters by surprise


  • LUNA 2.0 price has nosedived since its launch on May 28, 2022, posting 23.7% losses overnight.
  • Experts note that since its debut, LUNA 2.0 price witnessed wild swings on Binance, Kraken and OKX.
  • FatManTerra accuses Do Kwon of siphoning off over $230 million in LUNA 2.0 through wallets controlled by Terraform Labs.

LUNA 2.0 price on different cryptocurrency exchange platforms has hit extreme volatility since its debut. The new token’s price swung between $30 and $4.8; experts believe a lack of liquidity is driving LUNA 2.0’s extreme volatility. 

Also read: Terra’s LUNA 2.0 price explodes 50% as Binance, Gate.io, KuCoin, Kraken list the token

LUNA 2.0 price faces wild swings on exchanges

The new Terra token, LUNA 2.0, made its debut on leading cryptocurrency exchanges Binance, OKX and Kraken at different listing prices. Since its listing, the token has witnessed wild price swings and ranged between $30 and $4.8. 

On Kraken, a US-based cryptocurrency exchange, LUNA 2.0 price opened around $17; on OKX, it was listed at $1 and ranged between $20 and $5. Based on price data from TradingView and Kraken, LUNA 2.0 price suffered massive volatility

While experts consider volatility a characteristic of cryptocurrencies, extreme moves, such as those experienced by LUNA 2.0 since its debut, stand out. Speculators have been seen to booking quick gains when LUNA 2.0 price has moved higher, while holders of LUNC (previously LUNA) and UST are attempting to recoup nearly $40 billion lost in market value. 

Analysts criticize LUNA 2.0 volatility

Despite LUNA 2.0’s successful airdrop on Binance, token distribution did not occur as planned. LUNA and UST holders have received less LUNA 2.0 than expected from the airdrop. 

As the Terra team worked towards a solution to the airdrop issue, a pricing discrepancy between LUNC (LUNA Classic) and LUNA (LUNA 2.0) resulted in a $2 million attack on Mirror protocol, draining out funds. 

@FatManTerra, a whistleblower from the Terra Community Forum, shared insights on the attack on Mirror protocol where mBTC, mETH, mDOT and mGLXY pools were drained. 

@Bitfinexed, a crypto analyst/ trader who exposed the most significant financial fraud in crypto history, Bitfinex/Tether, believes the Terra crash resulted from a pump-and-dump scheme. The investigator believes the technology behind Terra doesn’t matter; LUNA 2.0 could crash as exchanges use the pump-and-dump strategy again on the token. 

@scottmelker, a leading crypto trader and investor and host of the Wolf of All Streets podcast, has a bearish outlook on LUNA 2.0. The analyst believes liquidity is key to a token in the crypto ecosystem and criticizes LUNA 2.0 for being illiquid

@Rager, co-founder of blockroots.com, criticizes LUNA 2.0. Blockroots.com co-founder is critical of Terra and Do Kwon and believes Venture Capital funds have readily bailed out LUNA after its collapse.

Author of The Bitcoin Standard, Saifedean Ammous, considers LUNA a scam, despite the return of Terra with LUNA 2.0, without algorithmic stablecoin UST. 

The LUNA 2.0 airdrop has amassed massive criticism from YouTubers, crypto experts and analysts as investor Lark Davis sold the tokens he received as part of Terra airdrop. Davis received LUNA 2.0 tokens on Binance. 

This has set off the notion that LUNA 2.0 may not be worth holding anymore

LUNA 2.0 price plummets overnight

LUNA 2.0 price dropped by nearly 40% in less than 24hrs after reaching a high of $11.90 on May 30. This downswing has produced three distinctive lower highs and lower lows, which reveal a falling wedge pattern when connected using trend lines.

This technical formation, however, is bullish and forecasts a 38.95% upswing, obtained by adding the distance between the first swing high and the swing low to the breakout point. LUNA 2.0 price appears to be edging closer to the upper trend line in an attempt to reach its bullish potential.

Still, the token has yet to slice through the $7.80 resistance level to validate the optimistic outlook. Breaching such a vital supply wall could allow LUNA 2.0 price to surge to $10.70.

LUNA-USDT chart

LUNA-USDT chart

It is worth noting that bulls must keep LUNA 2.0 price above $6.60 to generate a change and trigger a bullish impulse, because a decisive close below this support point could result in a steeper correction toward $5.20.

Analysts reveal whether it is a good bet to buy LUNA 2.0 after the airdrop

Akash Girimath, analyst at FXStreet evaluated the LUNA 2.0 price trend and evaluated the Terra token to determine whether it is ideal to buy. While analysts and crypto experts have sold their LUNA 2.0 tokens immediately after the airdrop, Girimath argues that despite the bearish outlook Terra has potential for a good trade. For more information, watch:

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum (ETH) is down 1% on Wednesday as issuers began filing their final spot ETH ETF S-1 drafts with the Securities & Exchange Commission (SEC) in anticipation of a launch on July 23. Meanwhile, SEC commissioner Hester Peirce also said the regulator may reconsider its position on ETH staking within the ETFs.

More Ethereum News

Could Vitalik Buterin's argument affect support for pro-crypto political candidates?

Could Vitalik Buterin's argument affect support for pro-crypto political candidates?

Vitalik Buterin released a post arguing that politicians who claim to be crypto-friendly now may not support it in the future. Buterin highlighted many key factors that crypto represents beyond trading tokens. Intentions of pro-crypto politicians are becoming the subject of debate following Buterin's post.

More Cryptocurrencies News

Dogecoin provides opportunity for investors to ride potential 40% rally

Dogecoin provides opportunity for investors to ride potential 40% rally

DOGE has maintained price patterns similar to BTC, ETH, and SOL. The popularity of other newer meme coins may be drawing attention away from DOGE. DOGE on-chain metrics and technical indicators suggest a rally may be on the horizon.

More Dogecoin News

AI tokens rally following Grayscale's Decentralized AI Fund launch

AI tokens rally following Grayscale's Decentralized AI Fund launch

Grayscale launched its Decentralized AI Fund on Wednesday, allowing investors to gain exposure to the price of AI-focused cryptocurrencies. Following the announcement, the general market cap of AI tokens rose by nearly 4%.

More Cryptocurrencies News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP