Yesterday’s trading session saw Terra Luna’s price drop below the $1.5 price level for the first time since its launch. Although the prices recovered in the late hours of the trading sessions, the drop signalled what was in store for the new crypto almost two months after it was launched.
Why did Terra Luna drop?
Terra Luna‘s drop in yesterday’s trading session was not surprising for anyone who has been following its price action for the past few weeks. However, yesterday’s drop had something else impacting it, the news of a joint investigation between the US and South Korea.
According to the latest reports, South Korea and the US have agreed to share investigation data on the company. There were also discussions on how the two countries could cooperate on investigations associated with financial crimes.
The investigation comes months after Terra Ecosystem, which included both UST and Terra Luna, collapsed in May. This resulted in a market meltdown that saw the ecosystem lose more than $40 billion in less than a week. Days after the original projects had failed in the markets, the company relaunched the cryptocurrencies again, with a starting price of $18. However, since the relaunch of the current Terra Luna, the prices have continued to fall, and today Terra Luna is down by 90 per cent from its original price of $18 to the current price of $1.7.
Terra Luna Price Prediction
In all my previous Terra Luna price analyses, I have indicated that my long-term view is to the downside. This includes my July 8th price analysis, where I indicated the prices would continue dropping until it hits the $1 price level.
Looking at the chart below, it looks likely that, in the next few trading sessions, the prices will continue to fall, and we might finally see Luna trading below a dollar. However, the chart also shows that the current bullish trend is long-term.