Analyzing Terra’s future as it becomes week’s worst-hit crypto in top 10
Just when bulls were thinking that things couldn’t go any lower, that’s exactly what the market did. Bitcoin finally fell right through the $40k level and was trading at $38,949.41 around press time. This time, the alts weren’t spared either as Ether dropped below $3k, and a whole host of coins and tokens followed.
Among the top 10 crypto, one former high-flying coin ended up recording the heaviest weekly loss in value.
At the time of writing, Terra [LUNA], the ninth biggest crypto by market cap was trading at $76.49, after sliding by 6.42% in a day and losing 13.63% in a week. However, this isn’t simply a weekly setback, as traders would know that LUNA is down by almost 36% since 6 April, when it was trading at around $117.
Indeed, a punch in the face for bulls. However, it’s vital to check if this roller-coaster of emotions – and prices – is about to throw traders for another loop. A glance at Tradingview’s Relative Volatility Index [RVI] revealed that volatility was below 50. This indicates that volatility is likely to be towards the downside, and shows a potential selling signal.
Source: Trading View
One important thing to note here is that LUNA’s fall in price comes despite the Luna Foundation Guard’s plans to acquire more Bitcoin and $100 million in Avalanche [AVAX] in order to support the reserve for its TerraUSD [UST] stablecoin. At press time, there was about $2.38 billion in said reserve, whose value slipped by 3.1% in the past days.
Another sign to keep in mind is LUNA’s TVL, which has also been trending downwards since early April. As the TVL fell below the psychological price of $30 billion, investor sentiments were negatively affected. Adding to that, TVL fell below the $26 billion level in the past 24 hours as
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