Terra (LUNA) Rebounded Over 1000% In a Day? — Can Investors Expect Any Ray of Hope?

The past two weeks have seen an extreme bear market in the history of crypto, with the total market capitalization of this industry dipping as low as $1.1 trillion for the first time since July 2021. Terra (LUNA) has once ranked among the 10 most valuable cryptocurrencies in the market and had an all-time high at the price of $119.5. By May 11, however, the price of the asset had lost about 99% of its value and dropped from $75 to $0.000005 in 5 days. With unexpectedly huge fluctuations, it rebounded by more than 1000% on May 14 and currently trades at the price of $0.000144. Faced with Luna’s current situation, where Luna’s next step has become a common concern.

What’s Next for Luna?

Crypto analyst WalletInvestor still describes LUNA as an “awesome investment” and predicts that the cryptocurrency should see bullish growth. The token is expected to surpass $50 in November 2022.

However, DigitalCoinPrice does not think it will surpass the $1 mark again. The LUNA crypto forecast says it will stay at an average price of $0.0002 this year. This is expected to climb marginally in 2025 when an average price of $0.0003 is predicted. By 2031, its Terra Luna coin price prediction anticipates it to climb to $0.0009. At the same time, in the long term, Luna’s future is also not optimistic. The LUNA crypto forecast from PricePrediction suggests a resurgence is not likely.

What Contributes to Luna’s Decline

Unlike Tether’s USDT or Circle’s USDC which are backed by fiat money or equivalent assets, Terra is designed to maintain the peg via mathematical algorithms and active trading. Recently, the UST has “de-pegged” from its value of $1 for a high selling pressure due to the massive drain from Anchor.

Since they are bonded by on-chain mint-and-burn mechanics, that massive short led to sharp drops on both UST and its sister token LUNA. Then the “de-peg” happened. When the traders realized that $1 worth of LUNA was no longer for $1 of UST, they became insolvent. As a result, the LUNA crashed by 98% of its price and lost most of its market cap.

A Problem of Public Trust in Altcoins?

In light of Luna’s big bear market today, the Luna team is contemplating what to do to make Luna recover but on the other hand, can they recover luna? This is extremely difficult to do because it requires a lot of attention from the public and finance to power the project.

The team needs the community to trust them again and give them a second chance but the community is tired of the project due to the huge loss of funds and loss of lives. In fact, there is greater trust in mainstream currencies in the face of the public and the fiscal sector. Meanwhile, mainstream currencies (BTC, ETH, etc.) have shown stronger anti-risk capabilities when dealing with market turmoil. However, I believe that many crypto beginners will have a headache with the complicated mechanism and gameplay of some mature platforms. For beginners, the Bitwells crypto exchange must not be missed. 

Bitwells – Leading BTC Futures Exchanges

Bitwells is a leading crypto derivatives trading platform offering 100x leverage futures trading on a variety of trading pairs – BTC, ETH, EOS, LTC, XRP, etc. Demo account, 100% bonus, and mobile apps are available on Bitwells. Bitwells doesn’t require KYC and is trusted by over 200k traders from over 200 countries/regions.

Advantages of Bitwells

100% Bonus for Every Deposit

To help traders earn more cryptocurrency, leading crypto derivatives exchange Bitwells has launched a 100% deposit bonus promotion to all traders. If you deposit 1 BTC, 2 BTC will be credited to your account. Every user can get up to 10 BTC for each deposit.

100x Leverage — Maximize Traders’ Profits.

Assuming we use 1 BTC to open a long contract when Bitcoin is trading at $30,000. Please note that with 100x leverage, 1 BTC can open a contract worth 100 BTC. 

One day later, the price of Bitcoin increased to $35,000.The profit will be ($35,000 – $30,000) * 100 BTC/$35,000 *100%≈14.2 BTC, making the ROI 1420%.

Now, with Bitwells’ 100% bonus, our initial investment would be 2 BTC, and our realized profit made with these 2 BTC will be 28.4 BTC, and the ROI will also be doubled to 2840%.

With leverage, it’s important to be vigilant, as returns can be outstanding, but liquidations are easier if the price moves down.

Join Bitwells, You Can Enjoy:

• Demo account with 10 BTC to practice trading without risks.
• No KYC requirement, registration with Email within a few minutes.
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Click here to Join Bitwells in your 30s with No KYC now, and start the journey to great fortune. 

Disclaimer: The opinion expressed in this chart solely author’s. It does not interpreted as investment advice. TheNewsCrypto team encourages all to do their own research before investing.