The price of LUNA 2.0 and the price of LUNA are each down by over 13% since early trading hours. In an interesting descending price action, more than 5% of the global market capitalization has been eroded since opening trading hours. Bitcoin’s massive drop has resulted in extreme bearish action on all major altcoins in the region.
Now that the bearish cartel has firmly marked its presence, is there any further upside potential for LUNA and LUNC prices?
Both the tokens rose quite high on the day of the air-drop but started falling the very next moment. This clearly indicates that traders are selling their air-dropped tokens, exactly as previously reported by Coinpedia. Hence, while the coin is surrounded by heavy uncertainties, there could be some chances of a slight upward swing.
It is quite evident from the above daily chart of LUNA that the price continued to decline soon after gaining a significant bullish momentum following the airdrop. It looks like the price has now reached the top of the descending triangle and hence there could be a marked decline. A pullback could pull the price below $3.8 which could be short-lived, pushing the RSI to oversold levels.
However, with the completion of the entire bearish cycle, LUNA price could be poised for a significant increase later. With a healthy rebound from these levels, the bears are expected to remain trapped which may force them to remain calm for some time, which could lead to an upward rally. On the other hand, it is believed that Do-Kwon lied about its LUNA holdings, which if true could affect the overall rally.
According to some reports, Do Kwon has more than 42 million LUNA which is used for voting. More than $200 million is held by the LUNA founder and TerraForm Labs, which expresses concern over the new Terra Chain’s claim to be fully decentralized and community-owned. Therefore, if these moves turn out to be true, the LUNA price could also fall into a deeper manipulation trap and in such a case, the bulls could be caught in a slight volatility move for a while.