As we reported on cryptokoin.com, Terra became controversial after the collapse of altcoin project LUNA and stablecoin TerraUSD (UST) in May. However, it is very difficult to ignore his recent performance. A technical correction is claimed to have followed the incredible LUNA rallies. Here are the details.
Altcoin called dead rises from the ashes
The altcoin had dropped to almost zero in May. LUNA, on the other hand, rallied 17,559,000 percent in four months when measured from its lows. The price continues to be traded at $ 6 levels. By the way, LUNA’s performance in September was interesting. It has seen an increase of more than 300 percent to date after a long consolidation. It is very important to note that LUNA is also traded on multiple exchanges with the LUNA2 ticker. Terraform Labs split the old chain into Terra Classic (LUNC) and Terra LUNA 2.0 (LUNA/LUNA2).
Terra Classic is the original version of the Terra blockchain. LUNA 2.0 was created by Terraform Labs founder Do Kwon as part of his regeneration strategy. In doing so, Kwon and his team periodically airdropped LUNA2 tokens to users affected by Terra’s collapse.
Terra Classic is the original version of the Terra blockchain, Terra LUNA 2.0 was created by Terraform Labs founder Do Kwon as part of his renewal strategy. In doing so, Kwon and his team periodically airdropped LUNA2 tokens to users affected by Terra’s collapse.
The popular altcoin project of recent times started to rise on September 9
LUNA/LUNA2 started the rally on September 9, the day when many things happened in the Terra ecosystem. First, Terra Classic (LUNC) accepted governance recommendations to add a 1.2 percent burn to all on-chain transactions that day. In other words, the offerings will permanently remove 1.2 percent of the LUNC supply from every on-chain transaction. Second, self-proclaimed Terra whistleblower FatMan reported a suspicious transaction to Binance worth 435,000 LUNA2 tokens, claiming the sender was TerraForm Labs. FatMan said:
I was having lunch [and] saw the LUNA2 rise. I checked the TFL Dawn wallet. Of course, after months of farming rewards with an airdrop they claim they never received, they sent all 435k existing LUNA 2s to Binance just days ago. This is just an address.
.@clayop tallied up the numbers – TFL sent a total of $3.9 billion USD (in UST) to exchanges including Binance and KuCoin.
Let the enormity of that figure sink in, and consider how many people's savings that is added up. Crypto's biggest fraud.
No explanation from @stablekwon https://t.co/qc2kCFPMHW
— FatMan (@FatManTerra) September 9, 2022
However, Do Kwon denied the allegations. The September 9 price jump comes a week after Terra passed its bid to conduct its second airdrop of over 19 million LUNA tokens by October 4.
LUNA technical price analysis gives bearish signals
From a technical standpoint, LUNA’s price risks undergoing a major correction in the coming days. First, on the four-hour chart, the altcoin project’s relative strength index (RSI) has climbed above 70, which is considered the overbought zone where a correction becomes more likely. Second, the price is forming an ascending wedge, bearish reversal pattern since Sept.
Specifically, the ascending wedge is formed when the price rises in a range with the upper and lower trend lines converging. It dissolves after the price drops below the lower trendline with the increase in trading volume. As of September 11, LUNA was testing the lower trendline of its wedges for a potential breakout move. In this case, the price will risk falling by the maximum height of the wedge. In other words, the LUNA could drop 30 percent from today’s price to $4.5.
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