2022-05-11 12:37:57
https://www.tradingview.com/x/fK69Pom3/
Question of the day: Should i buy #LUNA?
First of all, the reasons for the drop.
-UST which is TERRA/LUNA's dollar peg competitor to USDT has lost it's peg with the dollar, losing 77.58% of the value and this in turn affected LUNA itself.
- Offloading off BTC collateral and high beta of the whole project.
Terra has been acquiring treasury chests of Bitcoin to maintain the stability of its algorithmic stablecoin UST. Being exposed to BTC forced the algo to pump in more and more in order to maintain stability.
The Luna Foundation Guard deployed $1.5 billion in reserve assets to shore up UST's peg. The whole point of maintaining a reserve of Bitcoin and other cryptocurrencies was for precisely this moment. But the solution hasn't made a difference.
The problem of LUNA as we see it is the UST project which is backed by heavy Bitcoin reserves.
Technicals:
Long red candles with immense amounts of volumes that denote the selling pressure behind the coin. Potential LP at $3.88 but by the look of the last daily candle we have not yet seen a sell apex.
Below the $3.88 there is nothing to stop the price technically, only some kind of news can revert the price.
Technicals act for less than 10% in this situation so you better start watching the #LUNA hashtag on twitter.
So what do we do ?
Must say that LUNA is cheap right now and that it is not a bad project all in all, it can still recover but you want to buy low not midway.
At this point we can not project to mid term trades as we still haven't had a clear response plan from the founding team besides injecting more BTC into the algo... and BTC which is still unstable.
Possible short term entry with a really tight SL at around $3.50. Friendly suggestion to not trade LUNA in any leveraged mode.
Will update with more info
681 viewsedited 09:37
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