- LUNA 2.0 price has crashed 88% after reaching an all-time high at $30 on Saturday right after the launch.
- Despite the recent mishap, Terra (LUNA) has a chance at rallying 185% due to mean reversion.
- A breakdown of the $3.50 support level will create a lower low and invalidate the bullish thesis.
LUNA 2.0 price is consolidating below the midpoint of the recently formed trading range after the airdrop from last Saturday. Investors are advised to remain patient and wait for a directional bias to develop before getting into new trading positions.
Also Read: Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork
How the TerraUSD (UST) de-peg crash transpired
Trouble and doubt first began for LUNA when Terraform Labs founder Do Kwon made a public bet of $1 million with a Twitter user Algod that the price of LUNA would be higher than on the date of the bet, March 14.
Soon after GCR, another Twitter user, joined hands with Algod and ponied $10 million for the bet, which Do Kwon accepted and matched. Since then, the crypto space has been torn into two sects – those that support LUNA and its ecosystem and those that want to see it fail.
As the first weekend of May rolled up, the Terra crash unfolded as the peg between LUNA and the stablecoin UST started to fall apart. On May 7, the UST-USDT peg dropped 1.30% and the founder tweeted,
I’m up – amusing morning
Anon, you could listen to CT influensooors about UST depegging for the 69th time
Or you could remember they’re all now poor, and go for a run instead
Wyd
— Do Kwon (@stablekwon) May 7, 2022
