The Terra 2.0 native token, LUNA, is inarguably one of the most underperforming assets in the crypto market. The event surrounding the invention of LUNA is conceivably the main factor contributing to investors’ low interest in the TerraForm Labs-related coin.
Recall that LUNA was birthed shortly after the historic collapse of the Terra ecosystem which was caused by the de-pegging of the algorithmic stablecoin, formerly known as TerraUSD (UST), as designed by Do Kwon.
Ever since LUNA spiked to an all-time high of $19.54 on May 28, the token has been in a steady decline, establishing an all-time low of $1.17 in December 2022. With over 93% decline from its all-time high, roughly 43% decline in the last 90 days, and an 18% fall in the last 30 days at press time, interest in the token continues to lessen by the day.
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At the time of writing, LUNA’s price is exchanging hands at $1.33, having plummeted by over 2% in the last 24 hours. While it’s not certain the trend it will maintain in 2023, some technical indicators indicate that LUNA’s price could easily go either way in the short term.
Particularly, its relative strength index (purple) dropped below 60 today after reaching 70 earlier this year. Also, LUNA’s moving average (red) for the 30 days range continues to hover around its 200-day average (blue).
Considering that no algorithmic stablecoin powers the Terra 2.0 blockchain coupled with the lack of significant use cases related to the coin, the possibility of LUNA rallying to the $100 mark or anywhere close appears slim but not impossible.
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Should there be notable improvements around the blockchain project which is not similar to the shunned proposal to create a mutual alliance between Terra Classic (LUNC) and Terra (LUNA), massive adoption of LUNA could come from crypto investors. This and many other positive outcomes could in turn trigger a considerable price rally for the community-led asset in the foreseeable future.
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