LUNA 2.0 Suffers Significant Price Correction Hours After Launch
The recovery plan for Terraform Labs’ stablecoin TerraUSD (UST) and its native token Terra (LUNA) started a bumpy road after the LUNA 2.0 cryptocurrency suffered a significant market drop hours after launch.
TerraForm Labs has successfully delivered new LUNA coins to market participants with LUNA Classic (LUNAC) and TerraUSD (UST). According to data from cryptocurrency exchange BybitLUNA started trading at $0.5 and quickly rose to a high of $30 before falling more than 88% to $3.5.
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LUNA 2.0 price increased by 5,900%
On Saturday, May 28, the LUNA price rose 5,900% to a new all-time high of $30. Unfortunately, this spectacular rise was short-lived. The price quickly reversed and fell by 88% resulting in a swing low of $3.50.
The price of LUNA 2.0 rose quickly after reaching $3.5 and reached $10.22 before staying at $6 for the past two days. As this roll-up continues, there’s a good chance Terra bulls will get together and cause a big rally.
LUNA is currently trading above USD 8 with a gain of 1.36%. † Source: LUNA/USD price chart from Tradingview.com
People are optimistic about LUNA because assets usually go back to their average after a major move. The price of LUNA has recently fallen by 88%. But it’s likely to bounce back up just as quickly because the decline was so sharp. However, some members of the Terra community speculated that LUNA 2.0 would cost between $30 and $50 when released. Therefore, investors are outraged by the current price movement. Terra’s LUNA and UST death spiral keeps them losing.
Due to Saturday’s airdrop, LUNA 2.0 price is consolidating below the middle of the newly formed trading range. As a result, investors must be patient before opening new trading positions and wait for a directional bias to develop.
Will Kwon be blamed for market crash
Do Kwon has been the center of attention since the fall, with some in the crypto community blaming him for the market crash. He is charged with fraud leading up to: Mirror protocolat!
LUNA continued to lose money after the collapse, with a market cap dropping below $1 billion. But surprisingly, the crash sparked interest in LUNA, with Google search popularity figures skyrocketing.
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The collapsed token became popular because some people were very optimistic and put in more money. As a result, the price of the token went up quickly. But according to market analysts, the interest in the token was due to hopes that it would be like other meme coins, such as Dogecoin.
According to Do Kwon’s original plan for a new blockchain, the aftermath of the UST peg failure was an opportunity to rise again from the ashes.
Featured image from Flickr and Tradingview’s price chart