LUNA2 is sinking deeper as the market rebounds, investors have lost everything! | Luna

A few days after its launch, the new LUNA or LUNA2 token of the Terra network continues to experience high levels of volatility. The cryptocurrency was rolled out following the collapse of the old LUNA or LUNA Classic which lost nearly 99% of its value in just over a week.

This resulted in billions of dollars in losses for retail investors, as the Anchor protocol, the platform that promised UST stablecoin stakers a 20% annual percentage return (PAYR), and the entire Terra ecosystem enjoyed of great popularity.

LUNA2 is trading at $6.65 with a 7% loss on the 4-hour chart. The cryptocurrency was able to reach as high as $10 at its peak, but could continue to rise experiment downward volatility.

Data from Material Indicators (MI) hinted at further losses as the price hit its all-time high. Based on the trend precognition indicator on the daily chart, LUNA2 might retest support levels.

The cryptocurrency market could play against any potential recovery. The biggest cryptocurrencies, such as Bitcoin and Ethereum, were recording gains during today’s session after weeks of sideways or bearish movement.

Bitcoin hovered around 9%, but any gains from that rise were quickly lost. The number one crypto by market capitalization could return to its recent range between $28,000-$30,000 if bulls are unable to fend off increased selling pressure.

Analyst Ali Martinez has identified $29,800 and $28,600 as the next area of ​​interest for any potential support. LUNA2 traders could benefit from a bounce in these areas but could see further downside action in the near term.

As part of the creation of LUNA2, former LUNA holders are entitled to an airdrop. This measure aims to mitigate some of their losses and provide them with a tangible solution. However, some critics believe that the initiative will fall short and could contribute to lower prices as users receive and dump their tokens in the market.

Users Express Concerns About Stock Market Support for LUNA2

Before its launch, the future of a new LUNA token raised many doubts. When the price of the original cryptocurrency crashed to $0, cryptocurrency exchanges rushed to remove it and terminated any trading positions with LUNA, for the benefit or detriment of the operator.

Today, these same platforms support LUNA2. Many users have challenged these platforms because they believe that the token could follow LUNA’s trajectory towards oblivion.

Jesse Powell, CEO of cryptocurrency exchange Kraken, addressed these concerns. He said the following about LUNA2 and LUNA:

I don’t necessarily see them as being related. Is there a technical dismantling of LUNA2? Does LUNA2 have the same flaws? I’m not an expert on the part but we can assume that LUNA2 learned something from LUNA. Does supporting LUNA2 and airdrop improve the situation for LUNA holders?

Additionally, Powell claimed that the LUNA crash could be due to a “incompetence” rather than a “scam“, as many detractors believe. In this sense, he asserts that listing a cryptocurrency is different from endorsing it and adds: “All assets are at risk“.

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