Terra’s Pump Proved to Be Short-lived

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Photo - Terra’s Pump Proved to Be Short-lived
Terra has made headlines yet again. This time, however, for not-so-bad reasons.
On Sep.9, Terra (LUNA) rallied by over 300% as Terra Classic (LUNC) passed governance proposals to add a 1.2% tax on all its on-chain transactions.

As a result, between Sep.9-Sep.10, LUNA price went from $1,97 to $7,05 before entering a downward spiral, with the coin’s value slumping to $4.50 press-time.
Terra’s market performance. Source: Coinmarketcap

Terra’s market performance. Source: Coinmarketcap

Such a trend confirmed the previously issued prediction that because the token’s relative strength index (RSI) jumped above 70 (considered overbought territory), its price will be subjected to correction. More so since the price formed a bearish reversal pattern starting Sep.9.

LUNA’s price may therefore decrease even more in the coming days as the correction is most likely not over.

Terra is still receiving criticism

In June, Gagarin News reported that the CEO and co-founder of Terra (LUNA) and TerraUSD (UST), Do Kwon refuted the allegations on Twitter by FatMan, who claimed he had been cashing out $80 million every month for nearly three years.

Even though no indisputable evidence was found in support of FatMan’s statement, it did not stop him from taking another swipe at Do Kwon and reporting a purportedly suspicious transaction worth 435,000 LUNA2 tokens to Binance, alleging that the sender is TerraForm Labs:

“Was eating lunch [and] saw the LUNA2 pump. Checked the TFL Dawn wallet. Sure enough, after months of farming rewards with the airdrop they claim they never received, they sent all 435K available LUNA 2 to Binance just days ago. That’s just one address,” he tweeted.

Do Kwon dismissed the allegations once again.

To remind, in July, Korean and American authorities agreed to exchange data relating to the stablecoin TerraUSD and its digital coin counterpart, Luna.