• The Terra Luna price has dropped 10% in the last 24-hour period, with the altcoin falling by as much as 58% in the past month.
• Binance has updated the ‘risk warning’ it gives to customers when they trade the altcoin, with the exchange now advising users that the “token has been the subject of negative news/coverage recently.”
• Terra Luna’s chart suggests that it’s now in a position to rise again in the near future, with its relative strength index (purple) jumping from under 30 and its 30-day moving average (red) reaching a bottom in relation to its 200-day average (blue).
The Terra Luna price has been on a downward trend in the past 24-hour period, falling by as much as 10% and bringing its total decline in the last month to 58%. This is a significant drop for the altcoin, which had previously been one of the best-performing coins in the top 100 cryptocurrencies by market cap.
The decline in the Terra Luna price can be attributed to an update from Binance, the world’s largest cryptocurrency exchange. Binance has updated its ‘risk warning’ for customers trading the altcoin, now advising users that the “token has been the subject of negative news/coverage recently.” This is a relative improvement over its previous warning, but it has nonetheless underlined the possibility that LUNA will never be considered a ‘normal’ or ‘safe’ cryptocurrency, and therefore may not be able to return to its former heights.
Despite this gloomy outlook, Terra Luna’s chart suggests that the altcoin may be poised for a comeback. Its relative strength index (purple) has jumped from under 30 in the past few days to nearly 50, indicating that it may be reacquiring momentum. Meanwhile, its 30-day moving average (red) has arguably reached a bottom in relation to its 200-day average (blue), meaning that it may rise again, along with LUNA’s price, in the near future.
However, it’s important to note that technical analysis alone cannot be used to determine the future of Terra Luna. Fundamental factors must also be taken into account, and the picture remains largely uninspiring at the moment. The uncertainty surrounding the altcoin’s status as a ‘normal’ or ‘safe’ cryptocurrency means that it may not be able to return to its former heights.
Ultimately, the future of Terra Luna will be determined by a combination of fundamental and technical factors. If the altcoin is able to gain more mainstream acceptance and investor confidence, it may be able to return to its former heights. However, it is important to remember that the market is unpredictable, and there is no guarantee that the price of LUNA will go up in the near future.