A couple of days after its launch, the new LUNA or LUNA2 token from the Terra network continues to experience high volatility levels. The cryptocurrency was deployed as a result of the collapse of the old LUNA or LUNA Classic which lost almost 99% of its value in a little over a week.
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This resulted in billions of dollars in losses for retail investors as the Anchor Protocol, the platform which promised stablecoin UST stakers a 20% annual percentage return (APR), and the whole Terra ecosystem enjoyed high popularity.
At the time of writing, LUNA2 trades at $6.65 with a 7% loss in the 4-hour chart. The cryptocurrency was able to reach as much as $10 at its high but could continue to experiment with downside volatility.
Data from Material Indicators (MI) hinted at further losses when the price reached its all-time high. Based on the Trend Precognition indicator for the daily chart, LUNA2 could re-test support levels.
The crypto market might play against any potential recovery. The largest cryptocurrencies, such as Bitcoin and Ethereum were recording gains during today’s trading session after weeks of sideways movement.
Bitcoin was almost 9%, but all the profits have been lost in lower timeframes. The number one crypto by market cap could return to its recent range of around $28,000 to $30,000 if the bulls are incapable of pushing back against the increased selling pressure.
Analyst Ali Martinez identified $29,800 and $28,600 as the next area of interest for any potential support. LUNA2 traders could benefit from a relief bounce in these areas but might see further downside action in the short term.
#Bitcoin got rejected by the 200MA on the 4hr chart as anticipated!
Now, $BTC is testing the $30,750 support level. Failing to hold above it could send #BTC to the next areas of support at…
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