Terra LUNA: Despite progress, the ghosts of Christmas past remain
- LUNA’s popularity fell in June, as indicated by its social volume.
- Q3 began on a similar note as LUNA’s indicators remained bearish.
Terra [LUNA] recently published a report highlighting all the notable developments that happened in its ecosystem in June 2023. Not only did the blockchain undergo multiple integrations, but it also witnessed quite a few governance updates during that period.
Realistic or not, here’s LUNA’s market cap in BTC’s terms
Though these updates looked promising for the blockchain’s future, things on the ground turned out to be different as LUNA’s price plummeted.
Discover everything that happened within the Terra ecosystem in June, including ecosystem and governance updates, new integrations, media features, and community thread highlights ?️https://t.co/lKA4PQu4aF
— Terra ? Powered by LUNA ? (@terra_money) July 31, 2023
A look at Terra’s Q2
Terra’s resurgence continued in June with the official release of Warp Protocol. The company also announced its plans to go interchain and leverage its fee mechanism to buy back and burn LUNA, adding to its deflationary characteristics.
The blockchain also had a few developments surrounding PixeLions, a new NFT collection on Terra. Interestingly, it sold out its mint and enabled staking of its NFTs on Enterprise Protocol. Apart from these, 2 governance proposals were passed in the month of June.
As per the report, Prop 4726 and Prop 4728 were passed in June. The former incentivized Alliance adoption and the formation of mutually beneficial economic alliances between LUNA and other Cosmos ecosystems, while the latter provided TERRAN.ONE with a LUNA grant to continue working on Terra developer tooling.
However, these developments did not have an immediate impact on LUNA, as its social volume registered a decline. Negative sentiment around the token dominated the market, as evident from its weighted sentiment.
Terra’s Q3 begins on a sour note
As per CoinMarketCap, in the last seven days alone, LUNA’s price has dropped by over 8.5%. At press time, it was trading at $0.5651 with a market capitalization of over $189 million. Not only LUNA, but Terra Classic [LUNC] was also under bears’ influence.
At the time of writing, LUNC was down by over 2% in the last 24 hours and was trading at $0.00007953 with a market cap of $462 million. Terra’s declining price trend could continue further as Terra’s Open Interest was rising at the time of writing.
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A look at Terra’s daily chart also pointed out more problems. For instance, the Exponential Moving Average (EMA) Ribbon revealed a clear bearish advantage in the market. LUNA’s Relative Strength Index (RSI) registered a downtick, which was a development in the sellers’ favor.
However, the Money Flow Index (MFI) rebounded from the neutral mark, giving slight hope for a trend reversal.