LUNA and its algorithmic Terra stablecoin UST finally crashed. The crypto community can’t help but ask the relevant questions. Was the unprovoked attack on Luna an inside job or a villain on the loose? Will UST recover its peg to USD? What is Luna 2.0, and how different is it from Luna Classic?
Some signs of recovery are making everyone watch closely: the pullback collected liquidity resting below the June 18 swing low but produced a four-hour candlestick close above it. This development indicates that the buyers are in control.
Therefore, traders can take advantage of the next move, which will likely be a swift recovery above the $1.94 hurdle, followed by a bounce. In addition to the first trigger, the Relative Strength Index (RSI) has dipped below 30 – the oversold zone – and is recovering.
The last time a series of such events occurred was on June 18, and it caused LUNA price to rally 73% in under ten days.
The original Terra Chain will be rebranded as Terra Classic. Click here for the Terra V2 CMC page. The official announcement regarding the migration can be found here. Due to the de-pegging of UST, LUNA is experiencing extreme volatility. Please proceed with caution. The Terra blockchain was also halted. Please be properly guided before proceeding with any investment plans.
Today’s Terra Classic price is $0.000109 with a 24-hour trading volume of $233,712,079. Terra Classic is up 21.63% in the last 24 hours. The current CoinMarketCap ranking is #211, with a live market cap of $714,482,553 USD. It has a circulating supply of 6,563,360,252,837 LUNC coins and the max. supply is not available.
The Aftermath of the LUNA Debacle
While speculators ponder on their losses and the recovery plan, the Lunatic community has already charted the way forward for Luna through its decentralized voting platform. Amid the crash, TerraLabs founder and CEO Do Kwon offered a Luna recovery plan to stabilize the current crypto wreckage. This comes amid talk about a Luna delisting and trade suspension from exchanges.
Notices placed on CoinMarketCap: The original Terra Chain will be rebranded as Terra Classic. Click here for the Terra V2 CMC page. An official announcement regarding migration can be found here. Due to the de-pegging of UST, LUNA is experiencing extreme volatility. Please proceed with caution. The Terra blockchain was also halted.
The cryptocurrency Terra (LUNA) has collapsed by more than 99 percent. The coin’s value tumbled dramatically on Wednesday, falling from $6.75 to just over $1. It fell further on Thursday and was valued at just $0.02 on Thursday afternoon, May 12, 2010. On the other hand, Terra’s UST stablecoin fell as Low as 65 Cents before rebounding: what went wrong? Why did the stablecoin lose its peg, which is the US Dollar?
Just 2 months previously, Terra price analysts predicted a bullish trend for the day as the steep increment in LUNA/USD value had been detected. The price has recovered up to $96.77 after the bullish efforts seen on 9 March. The Independent offered a palliative to prevent a further “crypto run”:
Cryptocurrencies are increasingly moving in sync with tech stocks, with investors treating both as risk assets and often retreating to safer corners of the market during bouts of market volatility.Michael Kamerman, CEO, trading platform Killing
What is Terra (Luna)?
Terra Luna was an algorithmic blockchain configured to peg to the value of their fiat currency counterparts. An example was Terra USD pegged to the US dollar; the Luna token was then used to absorb volatility from the system. The systemic attack on Luna saw the algorithm crash into a death spiral.
Central to the recovery plan is the institution of a new chain Luna 2.0, with the old chain assuming the name Luna Classic. The recovery plan will see Luna 2.0 airdropped to UST, Luna, and UST holders about the post and pre-attack snapshots.
Terra Luna 2.0 Token Distribution
Terra LUNA Overview
Terra is a crypto payment solution that has gained a lot of traction since its initiation in January 2018 by Daniel Shin and Do Kwon, the men behind Terraform Labs.
The platform was built to keep in mind the price volatility of blockchain-based assets and perceive them. Terra focuses on price stability and usability and uses smart contract-enabled cryptographic versions of fiat currencies, called stablecoins, in its platform.
Terra has rolled out multiple fiats pegged stablecoins, including TerraUSD (UST), TerraCNY, TerraKRW, TerraEUR, and other digital currencies. The platform offers easy and quick transactions across borders without any hassle and is used by retailers worldwide.
The native token of the network, LUNA, is an essential element in the Terra Ecosystem and is responsible for platform governance. The LUNA token is responsible for operating the collateralizing mechanisms which keep the stablecoins in check and avoid massive fluctuation.
LUNA uses the Proof-of-Stake consensus and has an elastic supply depending on the platform’s need for stablecoins in circulation. Terra has a wallet called the Terra Station that can give direct access to stablecoins. One can access the DApps built on the Terra blockchain by using the wallet. Furthermore, the Terra Station can operate on a phone and a computer without failure.
Luna 2.0 is finally here, with the genesis block produced on May 28, 2022.
LUNA Classic History
The chart below by Coinmarketcap charts LUNA Classic price against time for the entire period since inception. Luna performed exceptionally well in 2021, reaching the year high at $54.77 on November 27, 2021.
The growing utility of UST and support from the Lunatic community had the price surge in 2022. Due to its stability and 20% annual staking APY, UST served as a haven for many investors. Before the attack, Luna was at position 14 by market capitalization.
Luna Classic registered an all-time high of $119.18 set on April 5, 2022, and an all-time low of 0.00001675 on May 13, 2022, after the attack.
LUNA Technical Analysis
Here we develop an ordinary least squares regression model for Terra applied against its price change over a chosen time using the Terra Best Fit Change Line. The slope of the best fit line is -0.37, suggesting that the Terra market price is likely to continue falling. There are 122 data points included, and the total squared variances between the anticipated Terra price change and the average price change is 5088.04.
Terra (LUNC) Price Predictions by Authority Sites
LUNA is an excellent long-term (1-year) investment, according to Wallet Investor. Smart technical analysis updates LUNA forecasts every 3 minutes with the most recent pricing. It is vital to remember that the LUNA price can be easily manipulated because of the low market size.
WalletInvestor forecasted future prices for a wide range of digital currencies, including LUNA, using technical analysis. If you’re looking for lucrative investments in virtual currencies, LUNA may be a suitable choice. On 2022-07-15, the LUNA price was 1.771 USD. If you buy LUNA today for $100, you will receive a total of 56.468 LUNA.
According to Wallet Investor estimates, long-term growth is projected, with a price prediction of 179.264 US Dollars for 2027-07-10. Revenue is estimated to be approximately +10022.19 percent after a 5-year investment. In 2027, your present $100 investment may be worth $10122.19.
According to Coincodex, the value of Terra will fall by -19.82 percent to $ 1.43 by July 20, 2022. The technical indicators indicate that the current attitude is bearish, with the Fear & Greed Index reading 15 points (Extreme Fear). Terra has 13/30 (43%) green days with 8.41% price volatility during the previous 30 days. According to the Terra forecast, now is not the time to buy Terra.
Comparing Terra to other significant technical developments and trends can help anticipate where Terra pricing will go in the long run. The table above indicates what the Terra price would be at the end of 2023, 2024, and 2025 if its development trajectory mirrored that of the internet, market sentiment or huge tech companies like Google and Facebook in their boom period.
In the best-case scenario, LUNA’s price projection for 2025 is $ 19.04 assuming it grows at the same rate as Facebook. If Terra grows at the same rate as the Internet, the forecast for 2025 is $3.75.
Digital Coin Price
Terra has a chance to break over the $2.77 barrier and capture the market by the end of 2023. Market analysts and experts believe that LUNA will begin the year at $2.18 and trade at roughly $3.08 by 2024.
According to their projections, this would be significantly more than the previous year. Terra Price Prediction, or LUNA, will skyrocket in 2026, with the potential to set new highs in terms of price points and market size.
The price of Terra is expected to reach $7.86 by 2030. Terra’s worth might reach $8.40 at its peak with an average trading price of $8.16 throughout 2030. Terra will attempt to achieve the lowest level of $8.75 in 2031. With an average predicted price of $9.35, it may strive to attain the maximum and next top tier of $9.77.
Terra Luna Price Prediction 2022
According to our in-depth technical study of LUNA price history, the price of Terra in 2022 is expected to be as low as $2.08. With an average selling price of $2.15, the LUNA price may reach a maximum of $2.38.
Terra Luna Price Prediction 2023
Terra’s price is expected to fall to a minimum of $2.98 in 2023. Throughout 2023, the Terra price can reach a maximum price of $3.63, with an average price of $3.09.
Terra Luna Price Prediction 2024
According to the projection price and technical analysis, the price of Terra in 2024 is expected to be $4.34. With an average selling price of $4.49, the LUNA price may reach a maximum of $5.19.
Terra Luna Price Prediction 2025
In 2025, the price of one Terra is predicted to fall to a minimum price of $6.47. Throughout 2025, the LUNA price can reach a high of $7.69, with an average price of $6.65.
Terra Luna Price Prediction 2026
The price of Terra is expected to go as low as $9.31 in 2026. According to our estimates, the LUNA price might reach a high of $11.16 with an average prediction price of $9.57.
Terra Luna Price Prediction 2027
According to our in-depth technical analysis of LUNA price data, the price of Terra in 2027 is expected to be about $12.77. Terra’s price may reach a high of $16.12, with an average trading value of $13.25.
Terra Luna Price Prediction 2028
In 2028, the price of Terra is expected to fall to a low of $17.81. Throughout 2028, the Terra price might reach a high of $22.54 with an average trading price of $18.34.
Terra Luna Price Prediction 2029
According to forecasts and technical analysis, the price of Terra in 2029 is anticipated to be as low as $26.17. The LUNA price may reach a high of $30.91, with an average price of $26.91.
Terra Luna Price Prediction 2030
Terra is expected to be worth a minimum of $37.75 in 2030. Throughout 2030, the Terra price might reach a high of $46.20, with an average trading price of $39.09.
Terra Luna Price Prediction 2031
The price of Terra is expected to go as low as $52.67 in 2031. According to our estimates, the LUNA price might reach a high of $65.93, with an average expected price of $54.63.
At the close of 2022, analysts anticipate that the price of LUNA will peak at a level equal to $2.38 USD.
It is anticipated that the value of Terra will continue to rise, given that scarcity often causes prices to rise. Please be aware that there is uncertainty associated with any investments. Simply said, before drawing any conclusions, you should make an investment in what you are capable of losing and do your own research.
It’s possible that by the end of this year, the standard price of Terra (LUNA) will have increased to $2.15. If we predict the strategy for the next five years, we see that the coin will most likely cross the $9.57 threshold without much difficulty.
Terra possesses an exceptional potential to achieve new heights in terms of its pricing. It is anticipated that the value of LUNA will rise in the future. Certain industry professionals and financial analysts predict that by the year 2030, the price of Terra will have reached an all-time high of $65.93.
The three-digit Luna prices seem attainable, but the model and assumptions do not look right to me:
1) It implicitly assumes the UST market cap increases by burning Luna. ThThat’sot true. UST market cap expansion comes mainly from the appreciation of Luna and secondly from minting new Luna. Test it: You can quickly validate it by plotting the UST market cap against Luna in circulation and the Luna price.
2) It assumes a money printing mechanism – Bitcoin and Luna prices can spiral up by buying into these two asset pools. But the whole point of Bitcoin is to hedge against money printing. I think we need to be skeptical about a model that spirals itself up. Testing it: replace the Bitcoin price with an upward trend with stochastic fluctuations.
Check if the terminal value still holds and whether LUNA prices during high BTC movements are sensible. I think the projection doesn’t well in the period-to-period movement, nor would it generate consistent terminal values. And conceptually, Bitcoin backing should reduce luna minting and burn, stabilizing the Luna price. Price will still likely appreciate due to adoption, but volatile movement (such as 1000x) is probably contradictory to this strategy.
3) It assumes a fractional reserve stablecoin will overthrow established fully backed stablecoins. But I think fully reserved stablecoins will still dominate. I think the $80k model result was driven mainly by the issues above.
A side note:
Never heard of it before today (probably says it all? lol), but the stable coins for the $WAVES eco de-pegged. Thoughts? A lot of haters want to see the same fate for UST.
A dear friend’s advice: If you have crypto, don’ flaunt it or keep it in your wallet — spend it!
The beginning of the end: Terra (LFG) buys over 2500 Bitcoin worth $100 MILLION? Read more here.
The Terra Luna stable coin crash has left a scar on crypto space. With 70% of Luna held in the top 10 wallet addresses, the chain is not as decentralized as we would like it to be. Luna 2.0 has an uphill task. Its CEO Don Kwon is already under investigation by the Korean government for task evasion and other civil suits.
Current investigations indicate the Luna crash was not an inside job but a lousy actor motivated by money or rather vice intentions.
Will Luna 2.0 rise to its former glory? Not likely, but time will be the true judge. The Lunatic community remains shaken and, at the same time, hopeful.
Exercise caution when it comes to investing in algorithmic stablecoins, if you are not knowledgeable about the crypto market and its volatility, it is advisable to stay off from trades to avoid Had I know.
If the teams succeed and make UST peg to USD, users who bought and hold UST now will be in massive profit but this might be risky because the team might not be able to peg UST to USD.