Terra Dries Up As LUNA Sheds 40% From Recent High
September 14 2022 - 1:16AM
NEWSBTC
LUNA has increased by about 300% just these past days, making it
appear as if it had risen from the ashes. The feat began on
September 9 and ended within a couple of hours. This is a result of
a proposal to put a 1.2% token burn tax on all transactions, which
will allow LUNC to become a deflationary cryptocurrency, according
to a recent tweet from Haily LUNC. Unquestionably, the May-June
LUNA crash has influenced the whole crypto community. There is a
correlation between LUNA and other crypto stalwarts such as
Ethereum if we compare the two. It may not be a price correlation,
but rather investor sentiment. Following the latest market crisis,
the market as a whole declined even worse. In the past few months,
Bitcoin and the other leading currencies in the market have
experienced severe bear markets. Related Reading: Cardano On White
House Crosshair Can Push ADA Up This Route Given the issue
surrounding LUNA, this rebirth is due to TERRA’s latest request for
a 1.2 percent transaction fee. According to TERRA, this would
consume 1.2% of the total LUNA in circulation per transaction.
According to a recent analysis, the current surge in price poses a
risk of reversal. After its unexpected price increase, TERRA
declined by 30 percent, proving the validity of my analysis.
StakingRewards estimates a yearly return of 38 percent on LUNA
stakes. If TERRA keeps rising, the expected profits might be quite
lucrative. But the state of things for TERRA as it is right now is
not promising. Recent growth stems from expectations that LUNA will
bounce back from a devastating decline. Only 1.2% of all LUNA will
be destroyed, but is it enough for LUNA to reclaim its former
prominence? According to the coin’s technical indicators, the
latest “rise” was its final hurrah. The price of LUNA tends to
converge at the 4-hour mark, which increases the potential for a
fall at such times. The picture is also more distinct thanks
to the 1-hour time marker. Right after the upswing ended, it
plummeted, only to recover somewhat before continuing its downward
trajectory. Overbuying signs mean the present support line at the
61.80 Fib level won’t hold. Related Reading: Chainlink Integrates
New Tech, And It’s Going Green – Healthy For LINK? Crypto total
market cap at $962 trillion on the daily chart | Source:
TradingView.com Featured image from Business Today, Chart from
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