Terra Luna is up by 4 per cent in today’s trading session. However, today’s price gain is a reversal of what has been happening in the previous three trading sessions, where we saw Luna’s price drop by 20 per cent.
Part of the reason we are seeing Terra Luna dropping for the past few months is due to the current cryptocurrency industry’s downward trend. Last week, the industry’s market cap fell below a trillion dollars again. Almost all cryptocurrencies were also on a strong bearish trend, with Bitcoin falling below the $20,000 price level again and Ethereum seeing its prices falling below the $1,500 price level.
Terra Luna, which is positively correlated with these major coins, also saw its prices dragged downwards. This is because, in most cases, when the general downward trend of the cryptocurrency industry is strong enough, it drags other cryptocurrencies downwards.
Besides the current bearish market for the industry, Terra Luna also suffers another disadvantage of having failed before. Therefore, despite showing a glimpse of hope early on after its launch on May 28, a lot of investors have stayed away from the project.
There is also a growing concern about the upcoming investigations into the operations of Terra Luna by the South Korean government. Depending on which direction the case goes, it can make or break Terra Luna. Such uncertainties have also contributed to the current climate, where many have stayed away from the project.
Despite Terra Luna going up by 4 per cent in today’s trading session, my long-term price prediction is still to the downside. My analysis is mostly based on fundamental analysis, whereby the ongoing bear market of the cryptocurrency industry will likely play a huge role in the trend for the next few trading sessions.
In my opinion, I expect the industry trend to continue being aggressively bearish. Therefore, the prices of altcoins such as Terra Luna will be dragged down. There is a high likelihood that we may see Terra Luna finally trading below the $1 price level. However, my analysis will be invalidated should Terra Luna trade above the $1.8 price level. At that point, it will be clear that we have entered a bullish trend.
This post was last modified on %s = human-readable time difference 15:39