Terra Faces Danger Despite LFG’s Bitcoin Accumulation


Key Takeaways

  • Terra has plummeted over the past 24 hours amid growing macroeconomic uncertainty.
  • LUNA was affected in the latest market downturn despite the Luna Foundation Guard announcing a $1.5 billion Bitcoin purchase.
  • If LUNA breaches the $77.70 support level, it could suffer a brutal crash.

Share this article

Terra’s LUNA is approaching a crucial support level that could define its future price action. As the macroeconomic outlook worsens, LUNA is at risk of a steep decline.

Terra’s LUNA at Vital Support

Terra is at risk of a downturn as market participants grow fearful about the global economic outlook.

The Layer 1 blockchain’s LUNA token has retraced by more than 10% over the past 24 hours, dipping from a high of $87.80 to a low of $78.80. The bearish impulse commenced Thursday after the Bank of England increased U.K. interest rates from 0.75% to 1% and predicted 10% inflation by the end of the year. On the same day, the Luna Foundation Guard made its biggest Bitcoin purchase yet, adding 37,683 Bitcoin to its reserve fund.

The nonprofit organization announced that it had bought more Bitcoin with the help of Genesis Trading and Three Arrows Capital, bringing its total reserves to around 80,394 Bitcoin. In the past, the Terra-linked foundation’s Bitcoin purchases have instilled confidence in the market and helped LUNA soar to new highs. However, amid a bleak macroeconomic outlook, LUNA failed to react to the latest update.

From a technical perspective, the token looks like it’s in trouble. It recently formed a head-and-shoulders pattern on its daily chart, anticipating a bullish-to-bearish trend reversal. A sustained close below the pattern’s neckline at $77.70 could result in a 35% correction, potentially sending prices below $50.

Source: TradingView

Due to the current market conditions, LUNA is at risk despite LFG’s ongoing Bitcoin spending spree.

Still, the pessimistic outlook could be invalidated if bulls succeed in pushing prices beyond the $94 resistance levels. Breaching this significant supply wall could encourage sidelined investors to re-enter the market, which could help the token revisit its previous all-time high. LUNA hit $119.18 on Apr. 5. It’s since shaved off around 32.8%, trading just above $80 at press time.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.

Share this article



Source link

Related articles

McDermott lands offshore Brazil contract with BRAVA Energia

McDermott has been awarded a sizeable* offshore transportation and set up contract by BRAVA Energia, an impartial oil and gasoline firm in Brazil, for the Papa-Terra subject within the Campos Basin and the...

Apple Watch Collection 10 sees a report low cost to only $379.99

Kaitlyn Cimino / Android AuthorityAt the moment priced at $379.99, the Apple Watch Collection 10 has dipped under its $499 tag. Although the sticker value discount won't appear big on paper, this 24%...

E book Evaluate: Cheaper Sooner Higher: How We’ll Win the Local weather Battle

Cheaper, Sooner Higher: How We’ll Win the Local weather Battle. 2024. Tom Steyer. Spiegel & Grau. In Cheaper Sooner Higher, Tom Steyer,...

After Bonds in Europe, Revolut Brings “Tax-Environment friendly Inventory Investing” to UK Retail Traders

Revolut has launched a brand new Shares and Shares ISA for its UK prospects. This follows the corporate’s latest transfer to supply entry to bond markets for retail traders within the European Financial Space (EEA).In...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com