Terra: With major whales dumping LUNA amid sell-off, the future looks…

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At the time of writ­ing, the Ter­ra [LUNA] token was trad­ing at a neg­a­tive val­ue of $65.36 that opened at a price of $68.10 for the day. As per addi­tion­al data from CoinGecko, the token stood at $73.27 on 7 May, 2022 and plum­met­ed by 10.8% as of 8 May 2022.

Fur­ther­more, the token has wit­nessed an extreme­ly rough patch as it was trad­ing ‑36.8% below com­pared to the per­for­mance of the token in the month of April.

Source: Trad­ingView

As per the chart giv­en above, the Rel­a­tive Strength Index (RSI) stood at 32.51 depict­ing bear­ish move­ment four days after try­ing to cross the 50 mark. The Awe­some Oscil­la­tor (AO) also sub­stan­ti­ates the short-lived bull­ish run that turned bear­ish in the last two days.

Addi­tion­al­ly, as per cryp­to reporter, Col­in Wu, USDT in Anchor fur­ther wit­nessed an out­flow of approx­i­mate­ly 2.25 bil­lion only in the last 2 days.

Are whales taking LUNA underwater?

As per data from San­ti­ment, the per­cent­age of sta­ble­coin total sup­ply held by whales with more than 5 mil­lion USD has wit­nessed a note­wor­thy down­fall. On 5 May, 51.35% of whales held the sta­ble­coin where­as as of 7 May 2022, the per­cent­age went down to 50.93% at press time.

The fact that investors are cut­ting the token loose may not be a great sign for the price per­for­mance of the token going ahead.

Source: San­ti­ment

Fur­ther­more, upon tak­ing a look at the vol­ume of the LUNA token at press time, it can be stat­ed that the increased liq­uid­i­ty may lead to the price of the token being in the neg­a­tive for some time in the future.

On 8 May 2022, the vol­ume of the token stood at 3.05 bil­lion, where­as on 7 May the token’s vol­ume was 2.8 bil­lion, which can be con­sid­ered a sig­nif­i­cant hike for one day.

How­ev­er, tak­ing into con­sid­er­a­tion the devel­op­ment activ­i­ty stand­ing at 11.07 at press time, the token does seem to have the poten­tial to per­form bet­ter in the future.

Will LUNA swim?

Giv­en that the per­cent­age of whales dump­ing the token goes up in the future, the price of the token can be expect­ed to plum­met. The sce­nario may change due to the LFG’s recent acqui­si­tion of $1.5 bil­lion worth of Bitcoins.

The recent invest­ment may boost the LUNA token giv­en that the last time that LUNA invest­ed in the king token, LUNA reached an all-time high.  How­ev­er, the event of LUNA reach­ing an all-time high may be far fetched giv­en the cur­rent price tra­jec­to­ry of the king token as well.



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