From less than $2, Terra Luna’s price soared to approximately $7!
The market-wide fall in May was fuelled by the simultaneous failures of Terra’s UST stablecoin and Terra LUNA, which investors are currently trying to recover from. However, following this upheaval, Do Kwon and his team’s efforts to recuperate restarted LUNA. Along with LUNA, its rival Terra LUNA Classic has seen tremendous growth recently. Over the past two days, the native token of Terra’s blockchain had a ROI of over 200%. Even still, at the time of writing, the currency has lost 67.5% of its value from its ATH. It’s an unexpected increase for a currency that has been hovering around the US$2 level since early June with little movement. Over the last day, the price spiked to a high of US$6.87, representing a top 247% rise from the day’s beginning. Although it has the same name as the cryptocurrency that had a near 100% decline in value in May, LUNA is a brand-new coin that Terra founder Do Kwon established to promote the Terra blockchain’s relaunch. Kwon’s attempt to try to revive the failing crypto ecosystem resulted in the creation of the recently relaunched LUNA blockchain, which was forked from the code of the previous one.
Crypto Rally for Luna
According to specialists in the cryptocurrency market, the increase is likely being fueled by a “tax burn” regime designed to reduce the token’s overly inflated supply. “Trading Luna is dangerous at this time. The new burn technique won’t significantly change the coin’s fundamentals. According to Dileep Seinberg, founder and CEO of MuffinPay, a bill payment and utility cryptocurrency, such transactions should be avoided and should only be entered into if one has a proper exit strategy for both upside and loss. The community has recommended a burn of 1.2 percent on all transactions on all activities on the old Terra luna network, according to Rajagopal Menon, Vice President of cryptocurrency exchange WazirX. “This burn will go on until there are 10 billion LUNC available. The total supply is now at 6.5 trillion. The idea, which mandates a 1.2 percent tax burn for on-chain transactions like deposits and withdrawals, was accepted by certain significant exchanges, including Binance, the largest cryptocurrency exchange in the world, he added.
Luna Price Study
Since hitting an all-time low on August 29, LUNA has gathered pace and is currently testing the US$1.7 mark. When this level was broken, it changed from being resistance to support as the bulls tried to break the US$2.1 barrier. After attempting to overcome this barrier twice, the third attempt led to a breakout rally and the inclusion of LUNA in price discovery. On September 9, the alternative currency had a strong bullish engulfing candlestick that helped the bulls focus on a region beyond the north-looking 20/50/200 EMA. Sellers might create short-term bottlenecks at the upper trendline of the up-channel if bulls breach the low volatility phase. LUNA would be in a good position for a test of the US$7-US$10 range and a possible reversal if it closed above the US$6.5 mark.
Why the Rebooted LUNA is Up So Big Today?
It may be an aftershock from LUNC’s momentum, riding on it successfully and launching to even higher percentage gains in the process. Additionally, Terra just introduced a claim procedure, with 19.5 million LUNA available, for owners of LUNA Classic who did not get the new token when the network was rebooted. Luna is still a risky trade, though. The basics of the currency won’t be dramatically altered by the new burn strategy. If you are afraid of losing, stay away from these trades and only engage if they have a sound exit plan for both the upside and the downside.
