Presently ranked because the ninth greatest crypto-asset when it comes to market capitalization, Terra’s LUNA doesn’t seem like performing all that nicely. Following the massacre that plagued cryptocurrency markets yesterday, LUNA’s value plummeted because it dropped by a whopping 8.91% to hit $81.64.
In reality, during the last 7 days, the altcoin has registered a 29.60% lower in market capitalization. Ergo, the query – Ought to traders be anxious?
Shopping for bitcoin, however failing to purchase investor’s confidence?
The Luna Basis Guard (LFG) has been busy snapping up Bitcoin currently. Now, as could be gleaned from the muse’s Bitcoin address, it made vital purchases of Bitcoin between 22 March and 25 March because it purchased about $125 million value of Bitcoin every day.
Additionally, on 6 April and 10 April, it snapped up a further 5,040 BTC and 4,130 BTC, respectively. On 7 April, the muse revealed that it boosted its stablecoin reserves by the acquisition of Avalanche tokens value $100 million from the Avalanche Basis. Alas, regardless of all these main purchases and bulletins, the worth of the altcoin continues to be on a gentle decline.
During the last 7 days alone, the buying and selling quantity for the coin has seen a decline of 14%.
Again in February, when the Basis introduced plans for elevating $1 billion by the sale of LUNA and its intentions to drive up its reserves, the value of the coin appreciated. As an example, by 27 February, the RSI had crossed the impartial area into the overbought zone (A place it final breached final December).
Nevertheless, as anticipated, a push-back in the direction of the 50 impartial line occurred nearly instantaneously. In April, the RSI had inched very near the impartial line and a day after the muse’s announcement of its partnership, the RSI dropped under the impartial 50 place.
The drop in value was attributed to final weekend’s crimson market as Bitcoin and most altcoins suffered a bearish run. On the time of press, the RSI was at 39.81 – Inching nearer to the oversold area.
Extra bother for the altcoin?
Curiously, a downward pattern was additionally noticed within the value of the coin following the publication of two threads on Twitter final weekend.
A Twitter person just lately shared a thread the place he questioned LUNA’s capacity to keep up the peg of Terra’s native stablecoin TerraUSD (UST). UST just isn’t backed by any tangible asset, he claimed.
A second thread shared by @JackNiewold accused Do Kwon of receiving all of the LUNA tokens meant to be “burned” to mint UST. The thread additionally argued that the LFG has been utilizing a share of burned LUNA provide to purchase Bitcoin.