- The derivatives data indicates weakness in the Terra crypto price.
- LUNA has a very high yearly inflation rate of 410.89%.
Terra is a blockchain platform for stablecoins and DeFi applications. LUNA is its staking and governance token. Terra Classic was replaced by Terra Phoenix after UST and Luna crashed. Terraform Labs, led by Do Kwon and Daniel Shin, created Terra.
Terra has an infinite max supply and a fully diluted market cap of $636.387 Million and its total supply is 1.004 Billion LUNA. The volume/market cap ratio of the crypto is 9.02% and the volume has declined by 44.6% in just the last 24 hours.
The market cap of the Terra crypto has also declined by 0.98% to $412.503 Million and its market cap ranking is 122nd in the global cryptocurrency market.
It has a circulating supply of 651.438 Million LUNA and its market cap dominance is 0.03%. The volatility of the crypto is also very high at 7.73%. The fear and greed index shows greed among the investors.
Terra Crypto Derivatives Analysis
The long/short ratio of the LUNA crypto is 0.8625 and the derivatives volume has declined by 45.2%. This has resulted in a traded volume of $15.41 Million and the open interest is $4.41 Million.
The recorded long liquidation for the crypto, as per Coinglass, is $10.08K while the short liquidation is worth $1.61K which is far less than the long liquidation.
LUNA Crypto Technical Analysis
The LUNA crypto price has been consistently forming a lower low swing structure which has led to a huge decline in the price. The crypto has dropped in value by 96.6% from its all-time high price.
The technical chart of the crypto is extremely bearish and indicates no signs of bullishness.
LUNA/USD Chart by TradingView
The 20-day and the 50-day EMAs are situated below the 200-day EMA and are forming a death cross on the charts. The price of the crypto is also below these EMAs and is facing rejection from the 20-day EMA.
The signal line and the MACD lines are situated below the zero level and there is the formation of uncertain histogram blocks. This behavior of the crypto does not signify any direction ahead for the price.
The RSI is trying to advance from the lower levels but is still below the 50-level. Unless the RSI breaks above the 50-level and sustains above the same, the momentum of the crypto will be considered bearish.
Summary
LUNA is the token of Terra, a platform for stablecoins and DeFi. LUNA has suffered huge losses after UST and Luna crashed. LUNA has high inflation, low volume, and bearish indicators. Based on these factors, LUNA is unlikely to recover and skyrocket anytime soon.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.