By Nathan Ferguson
As bulls appeared confident things could not deteriorate further, the market did the opposite. Bitcoin finally lost the vital $40K mark, hovering near $39,334 at this publication. The altcoin market followed, and Ethereum slumped below the $3,000 level.
One of the tokens that saw remarkable rallies was the heaviest hit among the top ten, recording massive weekly declines.
Terra Price Outlook
Terra’s LUNA traded at $76.49 at this publication, losing approximately 6.42% over the past day. The 9th largest crypto by value lost 13.63% in the past seven days. However, that doesn’t imply a weekly setback as LUNA remains 36% down since April 6, when the alt traded near $117.
That meant a massive hit for the bulls. Nevertheless, we may have to evaluate whether the roller-coaster of prices and emotions will have investors on another loop. The TradingView’s RVI (Relative Volatility Index) showed volatility beneath 50. That shows volatility could exhibit downsides, a potential selling sign.
Remember, the downward moves in LUNA prices emerge despite the LFG’s (Luna Foundation Guard) plan to purchase more BTC and $100M in Avalanche to support its UST stablecoin reserve. The mentioned reserve held around $2.38 billion, and the value dropped by 3.1% over the past few days.
Another LUNA signal to consider is the total value locked (TVL). This metric has seen downtrends since the early sessions of April. Investor sentiment deteriorated as the TVL declined beneath the $30 billion psychological level. Furthermore, Terra’s total value locked plunged beneath the $26 billion mark over the past 24hours, following a 2.81% drop.
Weakened Development Activity
Developers and investors invest in projects for varying motives. With that, bearish actions can chase traders, but developers remain patient. However, LUNA’s case seemed different as development activity saw a significant fall toward March levels amid a price crash.
Market players watching LUNA should consider LFG’s crypto reserves over the upcoming days and whether new acquisitions emerge.
Terra’s weakness emerges as the overall crypto market battle bearish actions. The global market capitalization dropped 3.21% over the past 24 hours to $1.83 trillion.