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.
Mirror Protocol is being exploited again as we speak, and the devs are completely MIA. So far, the attacker has drained over $2m and counting - the attack will get worse when markets open tomorrow unless the dev team steps in and fixes the price oracle. @mirror_protocol (1/4)
— FatMan (@FatManTerra) May 30, 2022
@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.
It's important to remember that while this audio recording is old, this is literally how the cryptocurrency markets operate today.
— Bitfinex’ed Κασσάνδρα (@Bitfinexed) June 1, 2022
It's a few traders & exchanges manipulating the market.
It's also why you see crypto exchanges list blatant frauds.https://t.co/0FKBFa7NqV
@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.
Nope, you are exactly the kind of retod who falls for a stupid scam like Luna, while also using fossil fuels and relying on them entirely for survival and believing they are bad because of a stupid green scam. BLOCKED!
— Saifedean.com (@saifedean) June 1, 2022
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.
Sold my $luna that I was airdropped on Binance. Nice.
— Lark Davis (@TheCryptoLark) May 31, 2022
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
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:
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.
