Luna; the moonshot crash will certainly leave more than a handful of traders with some really profound battle scars. Past performance is not an assurance of future results,” or something like that, they say. If you have had cause to ever study the charts at all, you will know that the previous statement is a true statement. And, this week, Luna’s price action is a vivid example of that. Luna that seemed to be on a moonshot mission a few moons ago has become a cascading myriad of gory red candles. Pretty bloody visual right? I know!
I recall playfully thinking, a few months ago that, the coin’s name must have something to do with its performance. Today, I stand corrected. Luna has undoubtedly changed countless lives this week. In a vey true sense of it. If you started out this week with holdings of a $1,000 worth of Luna, it is worth about 0.00165cents at the time of this writing. So you see, there is no exaggeration here. The prior visual seems to be rather modest when you place the numbers beside it.
It is not like things like these are unheard of in the financial markets, much less, in the crypto space. However, Luna’s sharp sell-off still came as a shock especially, to most who know their “crypto onions” because;
- Luna pumped to an all time high of just about $120, just last month. When the rest of the market was already showing some technical weakness.
- Luna is supposed to be one of the safe investments in the crypto space.
- Luna is considered a “blue-chip coin”, and not a “shit coin”.
- Blue-chip coins are regarded as coins with strong utility backing that influence their value.
- Blue-chip coins are not subject to price action solely or largely based on hype, like the shit coins.
- Terra-Luna has a stable coin, UST linked to it, which should further solidify its value, yet!
It was not so long ago that Terra, was the favorite of the crypto market, buying up loads of bitcoin – to create a reserve for its stable coin, UST. With the market as a whole, buckling under the pressure of a bleak macro outlook, this was some welcome bullish news.