LUNA 2.0 price and LUNA price tanked down hard by more than 13% each since the early trading hours. In an interesting descending price action, more than 5% of the global market cap has just whipped out since the early trading hours. Bitcoin’s drastic plunge has resulted in extreme bearish action on all the major altcoins within the space.
Now when the bearish cartel has marked their presence strongly, is there any possibility of a bullish set-up for the LUNA & LUNC price ahead?
Both the tokens rose pretty high on the day of the air-drop but began to collapse the very next moment. It clearly indicated that the traders sold their air-dropped tokens, exactly what Coinpedia had reported earlier. Therefore, while the token is surrounded by huge uncertainties, some possibilities of a minor upward swing could be in place.
It is quite evident from the above daily chart of LUNA that the price kept depleting soon after gaining a significant bullish momentum after the airdrop. The price now have seem to have approached the apex of the descending triangle and hence a notable plunge could be in place. The pullback could drag the price below $3.8 which may be a short-lived one, pushing the RSI to the oversold levels.
However, with the completion, of a whole bearish cycle, the LUNA price may be primed for a notable upswing later. With a healthy rebound from these levels, bears are expected to get trapped which may compel them to stay calm for some time, triggering the rally upwards. On the other hand, Do-Kwon is believed to have lied about his LUNA holdings which could impact the overall rally if it comes out to be true.
According to some reports, Do Kwon holds more than 42 million LUNA which is used for voting. Over $200 million worth of LUNA is held by the founder and Terraform Labs raising concerns over the claim of the new Terra chain being completely decentralized and community-owned. Therefore, if these rounds are set to be true then LUNA price may also fall into a deep manipulation trap and in such case, bulls could be trapped in a slight upswing move for a longer time.