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Terra

♨️BLACK SWAN for UST -38% 🔻, LUNA & BTC❗ 🔂 Recently we watched TerraUSD (UST) stablecoin briefly has lost its dollar peg since this week , falling even to 0.616$ recently . Its Bigger sister token, LUNA, also fell more than 80%. UST losing its $1 peg this weekend wasn't the first or the largest in Terra’s history. this is just an example of BLACK SWAN in crypto space but wasn't and won't be the last one ! What is UST? UST is a stablecoin such as usdt or usdc or busd , a so-called algorithmic stablecoin, works with LUNA to maintain a price of $1 using a set of on-chain mint and burn mechanics. In theory, these mechanics work to ensure traders can always swap $1 worth of UST for $1 worth of Luna, which has a floating price and is meant to serve as a kind of shock absorber for UST's price. What happened? First of all, we need to know that there are many popular protocols in the Terra ecosystem that were locked in more than $ 30 billion before yesterday. The point is that several billion dollars of locked-in capital was the Luna currency, which was used as collateral for borrowing. what does it mean ?? Well, you can borrow about 60% of the collateral and invest it elsewhere. This difference between the collateral and the loan must also remain constant, because the protocol must ensure that your loan is repaid, and if the dollar value of the collateral decreases, the protocol will automatically withdraw the collateral and sell it on the market to clear the debt. This was the maximum amount of pressure due to the collateralized Luna. On the other hand, in the last few days, due to the decrease in the profits of Terra network and due to better competing protocols, the demand for this network decreased, which is accompanied by sharp declines in the crypto market last week (probably triggered by the downward trend of the SPX index and stocks) and caused a malicious cycle : 🔻SPX and stocks crash >>>(🔻BTC🔜 >>🔻 Crypto market 🔜>> 🔻LUNA🔜 >> 🔻UST 🔜>> 🔻BTC🔂) Maybe one of reason of bitcoin dump was triggered because Terra Foundation moved $1.3 billion worth of BTC to save UST value. This lead the BTC panic selling and LUNA coin price crash. We will we will see some recovery once the FUD(fear, uncertainty and doubt) is over, also Terra foundation said that it will buy back all the BTC once UST demand increases. -------------------------------------------------------------------------------------------------------------------- 👉This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate 💜 if you're a fan of my Ideas PLZ follow me and give a big thumbs 👍 OR drop comment 🗯
COINBASE:BTCUSD
by PRO_SMART_Trader
LUNA/USD Daily TA Cautiously BearishLUNA/USD Daily cautiously bearish. * WARNING: If LFG is unable to reestablish the LUNA:UST peg, they may be forced to close down operations -- this would lead to an inevitable delisting of LUNA on all exchanges. * *LUNA is quickly making its way to as close to 0 as possible as it continues to be minted in attempt to salvage the UST peg*. Due to LUNA having fractions of a cent to move further down, I am sticking with my recommended ratio of: 5% LUNA, 95% cash ; however, for the bold believers (lunatics), this is perhaps a once in a lifetime opportunity to scoop up some LUNA (very low risk/very high reward - $50 USD would get you about 20k LUNA right now, and if LUNA were to return to even 1% of its ATH that $50 would be worth about $25,000). Given the circumstances, Volume hit a new ATH today and is now on track to favor sellers for 8 consecutive sessions. Parabolic SAR flips bullish at $64.14, this margin is very bullish. RSI is currently trending sideways along the ATL at 14.44 for the second consecutive session. Stochastic remains bearish and is currently trending sideways along max bottom in the bearish autobahn for a third consecutive session. MACD remains bearish and is currently forming a new ATL at -19.47 with no signs of trough formation. ADX is currently trending up at 32 as Price continues to fall closer to 0, this is bearish. If Price is able to find some kind of support here near 0, then it will likely bounce to test the previous ATL at $0.10 as resistance before potentially testing $4.67 resistance (this is almost entirely dependent on UST reestablishing the 1:$1 peg with LUNA). However, if the peg is unable to be reestablished I imagine that LFG will be forced to close operations (Do Kwon has alluded to this in the past) and LUNA will become defunct. Mental Stop Loss: (two consecutive closes above) $4.67. **Traders entering this position should be prepared to lose their entire investment**
L
by dailytaguy
100$☑️ LUNA BUY ZONES - WAVE 5 TARGETSIn our last Luna analysis we predicted the rise up to $100 as our target using the first wave extension theory as the foundation of our ide as seen below Today we will be talking about our buy zones inorder to be ready to ride the 5th wave. As you can see from our fib retracement tool, We are currently trading above the 0.236 region drawn from the end of wave 2 to end of wave 3, however trading below support. Next area of interest will be the next available support @$38 region, touted as our last line of defense for continuation in the case of volatility in our original analysis. 0.382 Region is now our last line of defense, I personally don't see it going below the 0.382 region as it aligns with the bottom of our rising wedge pattern which looks scary btw. You can try your luck with orders at the 0.5 region but i don't see that happening. Take profit zone is at the $150-157 region, with our main target withing the Red Zone to complete wave 5. If you agree, pls leave a like and share your thoughts in the comments. Make sure to manage your risks.
Long
by RektMyMom
LUNA - The same effect as OIL before now 0,10The 0,12 price of now can become later a historical price action where we can check back. The effect of luna is similar to the oil that was going to 0 and did return to above it was. There is a chance that Luna can get back into the trend, when we trade again above the 1 USD, more volume can enter. i know it had time for some also that hodl since the 100 USD + - personally I don't think it's a good idea to sell for someone that has it since higher numbers at this moment at 0, 11 i cant believe a top coin as this will stay 0,10- but all is possible. The reason for the breakdown trend is also the extra shorts that are made by whales, there are a lot of hodlers still not sold. when this effect becomes lower, luna could increase further in range. - the same effect we have seen with Oil before. Good news from the company can change the trend in the right way and I expect the company will do the best to come up with a good solution. This does not mean Luna will go to 0, but same time this is not investment advice or futures trading. - trade only with a plan and goal - all coins could be risky at this time.
Long
by Goldenbreakout
19
Good times coming? Do kwon want get stable coin back to 1 usdThe investment of Luna is at this moment is the riskiest investment last time- but for those hodl since higher numbers, I think it's not smart to sell. Will Do kwon make it true to get the stable coin back to 1 usd? if this happens, then we have a better hope for a new recovery for this coin. Most important is that the team of Luna is still behind the project - and hope for those who did invest at higher numbers, that we will get soon a spike increase back into trend. Also, futures of binance for this coin did turn off - this is good news - as more shorts can be get stopped. Even if the price is 0,01 or 0,10 its still in a small range, and this project should at last show again the 1 USD + to get into a new uptrend. Also, binance or other big companies can support luna - this could add in massive new buys. With the volume we have seen before 1 USD price action could be done in a short time if there is really good interesting news. To know more about crashes as this check projects or stocks that was 0, and did increase more than it was. An example is an OIL with corona time. it was going below 0, then all-time high - i am not saying this will happen with Luna, but there is a good chance for recovery, Most of the time market enters into panic time - then small step-by-step recovery, when the project has a good long-term goal - and i find that Luna has a good solid goal. When real volumes enter,it will be not about low cents change. Most of these are possible scenarios, most important is trade with plan and risk management.
Long
by Goldenbreakout
11
The Death of (Terra) a StablecoinAn algorithmic stablecoin sounds complicated, but that doesn't have to be. That's how Terra envisioned its algorithmic stablecoin and why it inevitably crashed. Here's how stablecoin Terra & Luna work: 1. In 2018, Terra network was created with two native tokens. Let's call them Terra (UST) and Luna (LUNA), of which the reasons will become apparent later on. 2. Terra is the stablecoin of the two and Luna has a variable price. These tokens are nothing more than numbers and a protocol on the blockchain. 3. For the ecosystem to work, we need to find people who want to buy these tokens, we do marketing. 4. Luna's price can vary, and is determined by the good old concept of supply and demand. Luna's price will be right in the middle. 5. If people find Luna fantastic, the demand for Luna goes up and so the price goes up, or at least not to zero. 6. Now here come's the tricky part: the blockchain promises that people can always exchange One Terra for $1 worth of Luna. That means if Luna is trading at $0.5 you get 2 Luna for One Terra. When Luna is trading at $4 you get 0.25 Luna for One Terra. If Luna trades at $10 you get 0.1 Luna and so on. The price of Luna can vary, but One Terra can always be exchanged for $1 worth of Luna. The reverse is also true and possible, people can always exchange $1 worth of Luna for One Terra. 7. Now we make an automated smart contract to make this exchange possible. Et Voila, stablecoin Terra is created. 8. Terra should always be worth $1. So terra should always trade at $1. If Terra trades above $1, arbitrage traders will buy Luna and then sell Luna for Terra for instant profit. If Terra trades below $1, arbitrage traders will buy discounted Terra and exchange it for Luna for instant profit. Arbitrage traders will push the price of Terra back to $1 if it deviates. 9. Luna's price can fluctuate but that doesn't matter. As long as Luna is not zero, you can exchange Terra for $1 worth of Luna and Luna for around $1 of Terra. Now we need to make sure Luna doesn't go to zero, since that would turn out very bad. So we need to give fundamental value to Luna, these are the ways to do this: - Collect transaction fees from people who exchange Luna for Terra & Terra for Luna and distribute (a part of) these fees to Luna holders as interest. - Create an ecosystem of smart contracts and applications on top of Luna and terra in which Luna is treated as the native currency to use this ecosystem. And ascribe a lot of value to it. This reinforces each other pretty well. The more fees you collect and distribute to Luna holders, the more viable your ecosystem gets. The more applications are being being built, the more Luna is being bought to interact in the ecosytem & the more fees are collected. But besides this, there's no algorithm explicitly saying that Luna always has a particular amount of value. The algorithm just lets people exchange Terra for Luna. Luna is only valuable if people think it’s valuable and believe in the long-term value of the system that you are building. The danger arises when people suddenly turn their back on Luna and think "Wait, it's all useless and it isn't real." and all sell their Luna tokens for Terra, which should always be equivalent to $1. If people sell their Luna, the price of Luna goes down. If people sell their Terra, you might think "the price of Terra can't go down because of the algorithm!". So if Terra drops to $0.97, arbitrage traders would buy it and exchange it to $1 worth of Luna for instant profit. Well. The problem is that when people lose trust in the whole system, they will dump both Luna and Terra. It looks like this: - Someone sells their Terra, and Terra drops to $.97 - An arbitrage trader buys 10 discounted Terra and exchanges it for Luna. Luna trades at $40 so the trader gets 0.25 Luna. (because exchange of Luna is at $1 par.) - Then the arbitrage trader sells their Luna, which drops the price of Luna to $20. - A second person sells their Terra, and Terra drops to $0.97. - An arbitrage traders buys 10 discounted Terra and exchanges it for Luna. Luna trades at $20 and the traders gets 0.5 Luna. - Which the arbitrage traders sells again, making the price of Luna drop even further. - Now Luna is worth $10, so 10 Terra gets you 1 Luna, which then gets sold, so Luna goes to $5, so 10 Terra gets you 2 Luna, etc. There's no stopping this process, it's a death spiral going down fast. Eventually Luna trades at $.01 and 10 Terra gives you 1000 Luna. And when you try to sell your Luna, you can't, because there are no buyers left and there are no arbitrage traders left who buy discounted Terra to exchange for Luna. The founders are actively searching for a solution, one is looking for capital of investors and the other is to mint way more Luna, so that One Terra can reliably be exchanged for $1 worth in Luna. Even if that means bazillions of Luna. Thanks for taking the time to read this idea. Stay safe out there. Support by following and sharing!
by jonathanvn
4
⚠️ LUNA - Going to Zero???? ⚠️❌ Luna Token supply was limited to 360 Million till two days ago. Since the de-pegging of UST and the organized scam conducted by Luna whales, the supply is increasing exponentially. Right now, it's 4.6 billion Luna Tokens, and it's just not stopping. Then the team sells these tokens in stable coins to maintain enough reserves for the pegging of UST. However, that results in mass selling, and the price of luna is almost zero. This selling won't stop until UST pegs, and after it's over, Luna whales will start pumping it up. The whole of other Luna Traders would have been rugged. After they pump it back up above two digits, they might start burning additional tokens. ❌ LUNA Supply increased 360M to 7B!! What a scam by the LUNA Team!! Let me know your opinion in the comments; I want to know yours.
by MonoCoinSignal
23
STABLECOINS ARE DYING! What's next???Yesterday we saw a huge plummet of ust (terra) stablecoin. Because of that Luna dropped 99% and currently is traded under 0.15c If you check other stablecoins, you can see that there is a lot of volatility lately and slowly but surely they start tanking down. What does it mean to us? 1. Stablecoins aren't stable anymore 2. It's better to wait the storm out in fiat 3. Usually, such instability happens before huge BTC drop. On the interesting note we can see that BUSD is holding stronger than others, and binance is really committed to keep it that way. If it holds, while others will fall, it very easily will become new #1 stablecoin. What do you think of this idea? What is your opinion? Share it in the comments📄🖌 If you like the idea, please give it a like. This is the best "Thank you!" for the author 😊 P.S. Always do your own analysis before a trade. Put a stop loss. Fix profit in parts. Withdraw profits in fiat and reward yourself and your loved ones
COINBASE:USDTUSD
by Artem_Dishel
3
LUNA/USD Daily Cautiously BearishLUNA/USD Daily cautiously bearish. The entire Terra ecosystem is suffering as LUNA is being minted and UST burnt at a faster rate to reestablish peg -- the timing of this is to be determined. Due to the risk of LUNA potentially falling to its ATL of $0.10, today's recommended ratio is: 5% LUNA, 95% cash. **However, because Price has fallen 99% without break in just 5 days, traders should be vigilant for a significant retracement bounce of some kind**. Price is currently trending down at ~$1 as it approaches a test of the ATL at $0.10; this is an unprecedent drop and has invalidated every single support on the way down. Volume is currently the highest it has ever been (justifiably) and is on track to favor sellers for seven consecutive sessions now. Parabolic SAR flips bullish at $75, this margin is bullish. RSI is currently slightly trending down and printing a new ATL at 14.44. Stochastic remains bearish and is flatlining as it coasts in the bearish autobahn zone at max bottom. MACD remains bearish and is currently trending down to print a new ATL at -16.40. ADX is currently trending up at 29 as Price has nearly retraced its entire Price history this week, this is bearish. If Price is able to find a bottom in today's session, the bounce will likely have it test $4.67 resistance and potentially $13.22 (with the potential to go even higher considering the severity of the downturn). However, if Price continues to fall here, it may fall to $0.10 to retest the ATL. Mental Stop Loss: (two consecutive closes above) $17.55.
L
by dailytaguy
lunausdt - UST more quickly.Yellen Cites UST Breakdown While Calling for Stablecoin Rules Treasury Secretary Janet Yellen said the de-pegging of TerraUSD shows the urgency to have a regulatory framework on stablecoins, which aim to minimize the volatile price swings seen in most cryptocurrencies. “A stablecoin known as TerraUSD experienced a run and had declined in value,” Yellen said during testimony before the Senate Banking, Housing and Urban Affairs Committee on Tuesday. “I think that simply illustrates that this is a rapidly growing product and that there are risks to financial stability and we need a framework that’s appropriate.”
Long
by Artem_Dishel
2
Can Luna Rise in this Winter?Price of Luna drops pretty heavily today. 4.08 area was very important support. This is hourly chart and you can see price touched it twice before broke out below with huge volume! After the breakout of 4.08, price dropped 66 cent losing %80 of its value in just 3 hours! This move is insanely speculative even for crypto markets! It is obvious something other than technical analysis caused this! But in pure technical analysis sense, if Luna is to rise 4.08 resistance is important. We got rejected 4.08 area twice in 2 hours today. Short and long term important resistance zones for Luna 4.08 8.79 If price can breakout above these areas we can says bulls are winning. But there are some fundamental problems with Luna that Terra Project should solve first! Follow for more charts and ideas. Thanks.
by thegreatwall38