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LUNA has been on the decline since the crash of the UST rocked the crypto space earlier this month. What had been one of the most successful cryptocurrencies in the market had quickly turned sour. The digital asset had fallen from trading around the $100 level to trading a couple of zeros below $1, causing holders to lose billions of dollars. Nevertheless, a lot of investors continue to hold out hope and trade the coin, which has led to multiple rallies.
Up 100% In One Day
On Sunday, LUNA had recorded one of its most successful days since the crash. After falling to $0.0001, it had promptly rallied once more as the daily trading volume had ramped up. This saw the digital asset hit as high as $0.0002 before the end of Sunday. The 100% had no doubt sparked more interest from crypto investors that had seen more people move into the digital asset.
Related Reading | Exchange Inflows Rock Bitcoin, Ethereum As Market Struggles To Recover
LUNA’s market cap which had declined significantly last week had begun to pick up on the back of this rally. The market cap which was sitting below $1 billion as of Saturday had regained its position above this level and has now settled above $1.2 billion.
The volume continues to remain on the high side even with the price now 99.9% lower than where it used to be a few weeks ago. Mainly, the interest in the digital asset has come from the fact that it is now highly volatile. Now, while volatility can be a quick way to lose money, it can also help investors make a lot of money in a short amount of time, hence all of the renewed interest.
LUNA price recovers to $0.0002 | Source: LUNAUSD on TradingView.com
To put this in perspective, if an investor had put $1,000 in LUNA on Saturday, by Sunday evening, they would have made a 100% return on investment. However, it is not always rosy with digital assets such as this, as $1,000 can easily turn into a pile of dust in the same fashion.
More Upside For LUNA?
There are a lot of speculations on what the future of LUNA will be. While the market is still reeling from the crash that saw millionaires lose their status in a matter of days, others have begun to settle into the new normal and have picked up trading on the digital asset.
Related Reading | More Stress For El Salvador As Bitcoin Dips To $29,000
The digital asset continues to skew strongly in the selling territory but recent trading trends have suggested that this might begin to change. Most of last week saw LUNA trading in the red. However, the recovery on Sunday has seen indicators skew to a 72% buy sentiment. If this continues, then the upside for the digital asset may very well continue, maybe driving the price once more towards $0.0005.
Inversely, this could also be a bear trap. A recovery that convinces investors that the digital asset may continue the trend, whereas will trigger sell-offs that will cause the price to dump. If this is so, then LUNA may well add another zero to its price this week.
The cryptocurrency is trading at $0.0001913 at the time of this writing. It is up 13.28% in the last 24 hours with a market cap of $1.25 billion and a total supply of more than 6.9 trillion tokens.
Featured image from Blaze Trends, chart from TradingView.com
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