The Terra Luna price has dropped to $2.00 today, with the altcoin falling by as much as 10% in the past 24-hour period. Its current level represents an 11% fall in a week, although it remains up by 58% in the last 30 days, making it one of the best-performing coins in the top 100 cryptocurrencies by market cap.
LUNA’s fall today follows news that Binance has updated the ‘risk warning’ it gives to customers when they trade the altcoin, with the exchange now advising users that the “token has been the subject of negative news/coverage recently.” Despite this being a relative improvement over its previous warning, the change has nonetheless underlined the possibility that LUNA will never be considered a ‘normal’ or ‘safe’ cryptocurrency, and, therefore, may not be able to return to its former heights.
Terra Luna Price Prediction as LUNA Falls 10% in 24 Hours – Here’s Where LUNA is Headed Next
LUNA’s chart suggests that it’s now in a position to rise again in the near future. Its relative strength index (purple) has jumped from under 30 in the past few days to nearly 50, indicating that it may be reacquiring momentum.
Meanwhile, its 30-day moving average (red) has arguably reached a bottom in relation to its 200-day average (blue), meaning that it may rise again, along with LUNA’s price, in the near future.
However, this is from purely a technical perspective, and takes no account of more fundamental drivers of the altcoin’s price. And when looking at the fundamentals, the picture remains largely uninspiring.
As noted above, Binance has updated its risk warning for LUNA. Up until yesterday, the exchange had taken the step of warning that “A South Korean court has issued an arrest warrant against the founder of Terra 2.0 (LUNA). Please understand the risks involved and trade with caution.”
While the new warning is less severe, the tweet above makes it clear that the Terra 2.0 community still doesn’t like that exchanges are warning traders about the risks of holding LUNA. They (rightly) consider it a mark on the reputation of the altcoin, one which may very well deter new investors from entering its market.
And this seems to be the rationale underlying LUNA’s selloff in the past 24 hours or so. Even with a comparative reduction in the warning against the altcoin, exchanges — and by extension, traders — continue to regard it with suspicion.
And this suspicion may never change, given that its founder Do Kwon does indeed remain a fugitive. It’s entirely arguable that serious developers and investors want little to do with a project whose principal founder and figurehead could easily be in prison in the not-too distant future.
Accordingly, there seems little fundamental reason to believe that LUNA will enjoy a strong and sustained rally anytime soon. It did surge to (an all-time high of) $18.87 on May 28, but since then it has fallen by 89%, with observers questioning whether a new LUNA without an algorithmic stablecoin would have any fundamental value.
And so far, it seems that such observers are correct since little has happened with Terra 2.0 since founder Do Kwon launched it back in May, after the collapse of the original Terra. Admittedly, there was a proposal put forward by developers in October to adopt a four-year plan that would boost Terra 2.0’s growth by earmarking LUNA for development, but this plan largely failed to gain adherents.
Likewise, a proposal last year to create a bridge between Terra Luna Classic and Terra 2.0 (so that LUNC and LUNA could be swapped) seemed to be very unpopular with much of the Terra Luna Classic community. So again, that remained stillborn.
In other words, the only real hope for substantial LUNA gains resides with articial, community-led pumps, which are notoriously unpredictable and volatile. So it’s probably a good thing that Binance continues to warn traders about the coin.
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Is Now A Good Time to Buy LUNA?
Considering the above, now may not be the best time to buy LUNA. However, if you’re looking for other high-potential crypto projects that don’t carry the same kind of baggage, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
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