- May 27, 2022
Will Terra (LUNA) ever come back to $120?
The crypto news cycle over the past two weeks has been largely dominated by Terra (LUNA). The coin has gone from being one of the ten most valuable crypto assets to a ranking below 200. Everything happened in a few days. So, will the stablecoin platform ever return to its heyday? Here are some highlights :
Terra has literally gone out of business in the last week.
The coin has reached historically low levels, although we have seen a slight recovery.
At the moment, LUNA is facing huge volatility with fluctuations of up to 50% per day.
Data source: Tradingview
Will Terra ever come back to $120?
Terra (LUNA) has always been considered the cream on the cake when it comes to cryptography. It was among the ten most valuable assets on the market and for a long time it traded above $ 100. But after periods of decline, the coin had stabilized at about $40 by 2022.
However, all this value was wiped out after its dollar-pegged stablecoin UST lost its anchor. LUNA simply crashed and is now selling for pennies. A return to glory, however, will not be so simple. Although a slight recovery has been reported over the past few days, there is so much volatility around LUNA that it is certain that it will return.
In addition, a lot of things that need to happen to give LUNA a chance have not happened yet. The UST is still disarmed and the Terra community is running out of resources to defend the stablecoin. It will be a miracle if LUNA returned to $10, let alone $120.
Should I buy the LUNA dip?
You can exchange LUNA right now, but don’t keep it. As noted above, due to the high volatility, the coin swings wildly.
This gives short-term speculative traders a chance to win big. But for the long term, LUNA is just too risky right now.