Is Terra(LUNA) Dead? Can Investors Expect Any Ray of Hope?
The Crypto crash continues for the 4th consecutive day which is constantly extracting a billion of the market cap each day. While there is an extreme fear among the traders, as they keep extracting all their investments, spiking the trading volume by more than 41.85%. Terra, being the spotlight of the crash recorded more than 90% crash for the 3rd consecutive day, trading below $0.1.
With the extreme volatility hovering around the crypto space and mainly surrounding the Terra(LUNA) price, what may be the ray of hope for a strong rebound for the investors?
As mentioned in our previous story, the Terraforms labs are busily stabilizing the UST peg which has again slashed below $0.5. While in due process, new LUNA coins are minted heavily. Therefore, due to the abundance of supply, the prices are compelled to fall from a great cliff. However, if the prices are to be uplifted, then the UST tokens need to be burnt which will happen once the UST pegs above $1.
Currently, in the smaller time frame, one can notice some buying happening which indicates the traders’ interest remains intact. However, one cannot expect any recovery unless and until the UST price stabilizes at around $1. But eventually may maintain a strong descending consolidated trend till then.
The very last support flipped to resistance is around $0.28 and only if the asset reaches these levels, then one can expect a halt in the descending trend, but not recovery. Also, the traders who wish to enter may wait for some time unless the UST price reaches close to $1. On the other hand, the Bitcoin dominance has also risen above 44% which is a good sign for stable market conditions.