Since its launch on May 28, Terra Luna’s price has continued to struggle in the markets. As of today, the new Terra Luna has lost 87 per cent of its value since its launch. The prices are also looking highy likely to continue with the bearish trend.
Why is Terra Luna 2.0 Dropping?
Since the launch of Terra Luna one month ago, its prices have trended in only one direction, downwards. Investors who jumped ship after the collapse of the former project, which also went by the same name, have also found it hard to recoup the money they lost.
After the collapse of the previous Terra Luna project, Terraform Labs decided to fork it and relaunch the project again. The idea was to continue with the Luna project while still being able to help the former holders.
Although the idea was benign, the project started losing value immediately after it was launched. Part of the reason this happened is the sell-off from previous Luna holders. New investors in the project were also selling the project in a panic response to the prices of the crypto dropping drastically after it was launched.
The relaunch also happened at a time when the cryptocurrency market was coming out of a crash that Terra Luna had caused. Therefore, most people were still afraid to get involved with the project. Even for those who participated, the investment was a short time, and they were looking to sell as quickly as possible.
Terra Luna Price Prediction
In my June 20th price prediction, I predicted that, once the current sideways market ended, I expected the prices to trade below a dollar. Although the crypto is still in a sideways market more than a week later, my prediction remains the same. I expect prices to fall below the $1 price level. There is also a chance that the crypto, once it hits the $1 price level, will spend most of its time below.