Terra: Investors of LUNA, LUNC may face some challenges due to this update regulation
A piece of legislation proposed in the House of Representatives would put a two-year moratorium on the creation of algorithmic stablecoins. According to the latest version of the Bloomberg law , it would be illegal to create or issue “endogenous collateralized stablecoins.”
With the cat out of the pocket, how to keep two infamous stablecoins? Let's find out…
NOON, how do you feel?
On September 20, Terra Classic [LUNC] opened at $0.000311 and closed at $0.00301, experiencing a loss of 3.12%. During the same trading period, it experienced a high of $0.000314 and a low of $0.000283. Support has held well at $0.000233. Furthermore, the volume showed minimal trading activities, but saw a drop to 153 billion from 239 billion at the end of trading on September 20.
Coinmarketcap shows that volume has dropped by more than 20% in the last 24 hours. OBV movement was predominantly lateral, indicating low LUNC activity.
The Relative Strength Index (RSI) shows a move along the neutral line. The Directional Movement Index (DMI) represents an upper signal line of 20. However, the positive DI line holds slightly below and the negative DI approaches the 20 trendline. Looking at the DMI and RSI, one A weakening uptrend has been seen with a downtrend likely forming soon.
MOON, is that you?
Terra [LUNA] is trading as low as 2.6% on September 20 and has failed to move higher than $2.7 during the same trading period. Furthermore, on September 21, the token started trading below $2.7 at $2.69, with a loss of more than 3%.
Resistance is at $3.50 with LUNA fighting against it since it last tested the level on Sept. 16. The $2.40 support holds, but there is a high chance that it is. it will be checked.
Volume shows low activity as volume drops from 34 million to 17 million. According to Coinmarketcap , volume has dropped by more than 40% in the past 24 hours. The OBV indicator shows a severe lack of activity with sideways lines and no spikes were noted.
The Directional Movement Index (DMI) shows a signal line above the 20 line with the minus DI line slipping above it. Also, the line plus DI gradually moves along the same line. This still suggests a bearish move.
The bearish sentiment was also confirmed by the Relative Strength Index (RSI) with a move slightly below the neutral line.
Hand in hand
Both LUNA and LUNAC have seen a downward trend in price movement since the announcement, although LUNA has more downsides. The indicators also suggest a possible strong downtrend for both LUNA and LUNC.
It has been months since the stablecoin move was first proposed, and it was previously delayed due to the concerns of Treasury Secretary Janet Yellen. Yellen called for stronger regulation of the crypto industry, citing the collapse of TerraUSD as an example.
A vote on the bill could take place as early as next week.
Sep 22, 2022