After the airdrop on Saturday, the LUNA 2.0 price is stabilizing below the newly created trading range. Before entering fresh trading positions, investors should patiently wait for a directional bias to develop.
Impact Of TerraUSD’s Depegging
The trouble and mistrust against LUNA started when Do Kwon, Terraform Labs founder bet $1 million with Twitter user Algod. As per the bet. As per the bet, LUNA price would trade higher than that of March 14.
GCR, another Twitter user, quickly joined forces with Algod and put up $10 million against the stake, which was accepted by Do Kwon. Since then, the crypto community has split into two camps. First being those who support LUNA and its ecosystem, and next, those who want it to perish.
The Terra collapse happened when LUNA and the UST peg began to move away on the first weekend of May. The UST-USDT peg fell 1.30 % on May 7, where Do Kwon tweeted,
Following this, panicked investors launched a bank run on UST, flooding the space with LUNA and causing its value to fall. After the price of LUNA plummeted to zero, there was complete silence until Do Kwon revealed the revival plan to release LUNA 2.0.
Recovery Plan By Terra
The recovery plan for a LUNA 2.0 was accepted and launched on May 28, after much debate . But Luna Classic (LUNC) was left behind. The airdrop splits into two parts:
- 30% as a community pool
- 35% to pre-attack LUNA holders
- 10% to pre-attack aUST holders
- 10% to post-attack LUNA holders
While qualified holders got 30% of the new LUNA 2.0 tokens in airdrop, many investors missed one key clause in the proposal. It said all the tokens are locked & stored at genesis. This must be unbonded to liquid”
This caused some investors to be unsure, but Do Kwon, the company’s creator, clarified the situation on Twitter.
So far, things aren’t looking good for the LUNA 2.0 pricing, which has dropped 88 percent from it’s all-time high of $30, but the future seems promising.
LUNA 2.0 Price To Rebound
After a successful restart on Saturday, May 28, the LUNA price surged 5,900% to a new all-time high of $30. This spectacular rise was only for some time. This followed by a reversal and an 88% drop, resulting in a swing low of $3.50.
Following this move, there was an upswing of $10.22, which is precisely the state that the LUNA 2.0 price has been stuck in for the past two days. As the coiling continues, Terra bulls have a decent possibility of banding together and triggering a huge surge.
The first sign of this bullish trend is a rebound over the 50% retracement line at $6.86. Next, the price of LUNA might rise to the range high of $10.22. Terra, on the other hand, must return to the middle of the 88% drop in order for mean reversion to occur, which gives us a theoretical objective of $16.75.
If the run-up happens, the cryptocurrency will have gained 185% from its present position. This will indicate altcoin’s upside is likely to be limited. However, given the market’s tremendous uncertainty as a result of Bitcoin’s consolidation, a return to its all-time high of $30 is doubtful.
From a technical point, the mean reversion argument makes logic, but it will eventually be assessed by Bitcoin’s directional bias. If the price of the main coin drops, the price of LUNA is likely to follow suit. If bears create a lower bottom below $3.50, the bullish argument will be take place, implying that a further decline is more likely.
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Source: https://coinpedia.org/news/luna-2-0-airdrop-splits-into-3-zones-will-luna-2-price-revisit-30/