The LUNA index has been increasing by 300% in the past few days. It makes it seem as if it rose from the ashes. It began on September 9th and ended in just a few hours.
The proposal to impose a token burn tax of 1.2% on all transactions will result in this change, Haily LUNC stated recently.
The May-June LUNA crashes have had a profound impact on the crypto community. Comparing LUNA with other crypto stalwarts, such as Ethereum, we can see a connection. The correlation may not have been due to price but instead investor sentiment.
The market overall fell further after the recent market crisis. Bitcoin and other market leaders have seen severe bear markets over the last few months.
Given the issue surrounding LUNA, this rebirth is due to TERRA’s latest request for a 1.2 percent transaction fee. TERRA states that the transaction fee will consume 1.2% total LUNA.
A recent analysis found that there is an opportunity for price increases to reverse. My analysis proved valid after TERRA experienced an unexpected rise in price. TERRA fell 30 percent.
StakingRewards projects a 38 percent annual return on LUNA stakes. Profits might become very profitable if TERRA’s growth continues. The current situation for TERRA is not encouraging.
Recent growth is due to expectations that LUNA would rebound from a catastrophic decline. However, only 1.2% will be lost. Is this enough to restore LUNA’s former glory?
According to the coin’s technical indicators, the latest “rise” was its final hurrah. The price for LUNA tends towards convergence at 4 hours, increasing the risk of a decline at those times. Thanks to the 1 hour time mark, it is easier to see the picture.
The upswing was over, and it plunged right away, before recovering slightly to continue its downtrend. Overbuying signs mean the present support line at the 61.80 Fib level won’t hold.
Crypto market capitalization at $962 trillion according to the daily chart. Source: TradingView.com| Source: TradingView.com Featured image taken from Business Today. Chart from TradingView.com