Terra Luna 2.0 has continued to plummet weeks after it was launched to address the previous collapse of Terra Luna Classic. Today, the cryptocurrency is down by 3 per cent. It is also looking like it will continue dropping throughout the session.
A Recap of Terra Luna 2.0
The Terra Luna 2.0 was launched on May 28 as a solution to the collapse of the Terra Luna classic. Before the collapse, the Terra Luna classic was the main Luna and was algorithmically linked with the UST stable coin.
Unfortunately, the UST stable coin was de-pegged. Finding its peg meant producing more Terra Luna to meet the 1:1 dollar to UST ratio. However, pegging back, the UST got out of control, which resulted in both the UST and the USD prices dropping by more than 99.99 per cent. The drop in value caused billions of dollars in the markets to be wiped out.
There was also a widespread fear that the crash of Terra Luna would be the beginning of the end of the entire cryptocurrency industry. The fear in the markets resulted in a global cryptocurrency downturn that wiped hundreds of billions of dollars in the crypto market capitalization.
Terra Luna Price Prediction
In my June 13 price analysis, I predicted a possible below the $1 price level for the cryptocurrency. However, in today’s trading session, although the prices have not hit the $1 price level, the prices have been trending aggressively bearish.
Therefore, my Terra Luna price prediction has not changed. With today’s 3 per cent price drop, I expect the prices to continue falling in the next few trading sessions. My Terra Luna 2.0 price prediction still expects the prices to trade below $1.
However, should the prices rise and trade above the $3.8 price level, then my bearish analysis will be invalidated. It will also mean a possible push to the upside is possible.