LUNA, the new Terra cryptocurrency on its version 2 chain has lost a chunk of its value in the past few hours. The cryptocurrency, which is currently trading at $5.04 has lost 27% in less than 12 hours.
According to data from Coinmarketcap, LUNA dropped from $5.4256 to $4.9038 at 11.00 AM Paris time. This is a 9.6% loss in just 5 minutes. 35 minutes later, LUNA plunged from $4.9092 to $4.7009, a 4.2% drop in price.
June 5 Low
This was not even its lowest price for June 5. The price rose to $4.9642, 40 minutes later, before plunging to its lowest support for the day at $4.6498. Even though it later rose to $5.3569 at 6.15 PM, it never got to the day’s high of $5.5461.
A look at the chart shows that the coin has a trading volume of $528,611,232 in the past 24 hours. This could be an indication of a massive outflow as investors liquidate their positions.
By Monday morning, LUNA has made some recovery, which is a lot better than the past 24 hours. It is currently down by 7% at 6.26 AM Paris time, on June 6.
Market Sentiment And Analysis
LUNA is trading at $5.02 and from the market sentiment, LUNA will continue to trade along a descending trendline in the near term, This can be seen from the 45 minutes chart.
Bixley, a market analyst wrote the reason for this:
“LUNA has been trading downwards along the upper trend line on this 45 min chart. From here it is possible a large break out upside occurs, in my thoughts to an over-reaction of the market drop. I expect upside as the issue was fixed”
Projects Deploying On Terra 2.0
Meanwhile, the new Terra blockchain, Terra 2.0 doesn’t seem to be in short supply of projects. On June 5, Astrochad deployed its DEX on the network. The project called on liquidity providers to start swapping on it.
In a similar development, a liquid staking protocol, Steak also deployed on the Terra 2.0, hours ago. According to the Steak team,
“Steak is a liquid staking protocol for $LUNA.”
It added that users can directly stake on the platform and autocompound at 0% fees.