The plan to rescue Luna coin was still quite fuzzy, but this stable coin kept falling to the floor. If you used 1000 billion VND to buy Luna coin before, now it only costs 10,000 VND. Are investors already lost? Is Luna coin recoverable? Even many Vietnamese traders rushed to catch the bottom but before they could accept the offer, they were empty-handed. These are definitely the bewildering things of many investors after the recent crash of Luna coin. Knowing this concern of readers, Thuvientaichinh invites you to read through this article to analyze it with us!
Luna coin crash event
Before we make a prediction, can Luna coin recover? Let's analyze how this coin crashed!
The ecosystem of the Terra project in general and the Luna coin in particular was created to increase the scalability of the coins. Accordingly, Luna coin as an integral core part of Tera's dual token structure together with UST. If investors want to get UST, they need to burn Luna coin. On the contrary, if you want to get Luna coin, you need to burn UST. This property shows that the supply and demand of cryptocurrencies is extremely important and it will affect other factors.
Luna coin crash event
However, the last time was on May 9 when the UST withdrew from the US dollar. As well as the dizzying increase in the buyback of Luna coin, it increased the supply and caused the price to drop by 99%. Earlier in April, this digital currency was once traded with a high value of $ 100. Only on May 12, the price of this coin dropped to just $0.003385 per Luna coin.
Indeed, this result is not expected by anyone, especially investors of Luna coin and other coin traders. Firstly, Luna coin investors will have nothing left to withdraw their investment capital. Secondly, there are many rumors that this project is a scam coin, so it has evaporated up to 99%. From there, making many people gradually lose faith in the cryptocurrency market.
Prediction: Will Luna coin recover?
The main use of Luna coin is for administration and staking. And if investors want to receive benefits, the transaction fees at this platform are mandatory for them to use Luna coin as a valid asset. Plus, it has no value other than creating a UST as we explained above.
Since its 2019 launch, the Luna coin is denominated in US dollars and most of its value has not traded above the US$1 threshold. But it wasn't until 2021, when the cryptocurrency market started to explode, that the value of Luna coin also increased rapidly and it became an ideal investment asset for traders.
Prediction: Will Luna coin recover?
If on March 21, 2021, the price of Luna coin once traded at a peak of $22.33. Even until the end of December 2021, the value of Luna coin continued to peak at $103.33. By mid-May, the coin had dropped to just $3.94.
With the current situation according to our assessment and prediction, the possibility of Luna coin recovering will be relatively difficult. Because of:
Once the cryptocurrency drops 99% in value, it is very difficult to rebuild trust with customers. Most investors don't have the guts to stay attached to an asset that has left them empty-handed.
Besides, when the price of Luna coin was too bad, it seemed to go back to the starting point. If the project development team wants Luna coin to recover, it needs to put in a lot of effort.
It will be quite difficult for Luna coin to recover
Luna coin price prediction in 2022
According to short-term sentiment as well as technical analysis , Luna coin is still continuing its downtrend. It even broke through the moving average significantly, showing that the trend is still strongly bearish in the near term. Some predictions from crypto sites like CoinCodex also put their prediction through technical analysis on this coin to fall further towards $0.000136.
As for the long-term prediction of the future of Luna coin, it is not very positive because most analysis sites think that the possibility of Luna coin recovering is not possible. The price could even average $0.0136 in the following months of 2022. In 2023, it could reach a value threshold of $0.0147.
Luna coin price prediction in 2022
With this collapse, the crypto market is extremely volatile. Since then, accurate price prediction also causes many difficulties for analytical units. If you have another analysis about whether Luna coin can be recovered