Terra: With major whales dumping LUNA amid sell-off, the future looks…
At the time of writing, the Terra [LUNA] token was trading at a negative value of $65.36 that opened at a price of $68.10 for the day. As per additional data from CoinGecko, the token stood at $73.27 on 7 May, 2022 and plummeted by 10.8% as of 8 May 2022.
Furthermore, the token has witnessed an extremely rough patch as it was trading -36.8% below compared to the performance of the token in the month of April.
As per the chart given above, the Relative Strength Index (RSI) stood at 32.51 depicting bearish movement four days after trying to cross the 50 mark. The Awesome Oscillator (AO) also substantiates the short-lived bullish run that turned bearish in the last two days.
Additionally, as per crypto reporter, Colin Wu, USDT in Anchor further witnessed an outflow of approximately 2.25 billion only in the last 2 days.
Are whales taking LUNA underwater?
As per data from Santiment, the percentage of stablecoin total supply held by whales with more than 5 million USD has witnessed a noteworthy downfall. On 5 May, 51.35% of whales held the stablecoin whereas as of 7 May 2022, the percentage went down to 50.93% at press time.
The fact that investors are cutting the token loose may not be a great sign for the price performance of the token going ahead.
Furthermore, upon taking a look at the volume of the LUNA token at press time, it can be stated that the increased liquidity may lead to the price of the token being in the negative for some time in the future.
On 8 May 2022, the volume of the token stood at 3.05 billion, whereas on 7 May the token’s volume was 2.8 billion, which can be considered a significant hike for one day.
However, taking into consideration the development activity standing at 11.07 at press time, the token does seem to have the potential to perform better in the future.
Will LUNA swim?
Given that the percentage of whales dumping the token goes up in the future, the price of the token can be expected to plummet. The scenario may change due to the LFG’s recent acquisition of $1.5 billion worth of Bitcoins.
The recent investment may boost the LUNA token given that the last time that LUNA invested in the king token, LUNA reached an all-time high. However, the event of LUNA reaching an all-time high may be far fetched given the current price trajectory of the king token as well.