Terra (LUNA) Declines by over 39000% in 24 Hours: What Next?
Although, the present market downtrend affected Terra's price for some days. It's major dip has been caused by faults that led to the implosion in its Stablecoin TerraUSD (UST), and Binance's decision to suspend the withdrawal of the token.
With the position of the Terra founder that it is doing everything to restore it to a part of recovery, the price of LUNA has experienced some recent regain.
Irrespective of this position, the early investors are counting their great losers after hoping that the project is here to stay and with great prospect in the future.
From the present price, it means that investors, who had invested in Terra when it was at its seven-day high price of $68.27, are now having $0.00022 for each 68.27 investment. Presently, every long-term holder of LUNA is now having $22 for their $100,000 investment. This is seriously a disaster.
Another factor with LUNA investors was that they never had prior knowledge of this since some new investors even entered the market and bought a lot of LUNA with the hope of a rebound. However, the reverse was the case since they joined the bandwagon of Terra losers.
All hope is not gone for LUNA investors irrespective of the position of some exchanges like Binance and LBank that have suspended transactions on LUNA withdrawal.
The trading volume of Terra (LUNA) is about $2.7 billion and has increased by over 120% in the past 24 hours. This shows that there are still activities within the LUNA token. Also, Terra was increased in CoinMarketCap ranking of cryptocurrencies by over 80 positions in the past 48 hours. This could mean that the necessary changes within its ecosystem are yielding good results.
With this high volatility that was not foreseen by most analysts prior to its happening, we shall look at the chart below to see what should be expected next for Terra (LUNA).
Source: https://www.tradingview.com/x/3qaDt3D5/
Conclusion
The present loss in LUNA price could be damaging for short-term investors. However, history has shown for tokens with real application and usage, only time is needed for them to break newer highs for long-term investors.
