Will Luna 2.0 Fall Below $1?

Vinod Dsouza
Terra Luna Hard Fork
Source: fxempire.com

The fall of TerraUST and Luna to $0 gave birth to Luna 2.0 after its founder Do Kwon suggested bringing the token to life through the governance votes. With 65% of the votes favoring his proposal, Luna 2.0 launched at the end of May 2022. Luna 2.0 opened for trading at $17.8 and quickly spiked to $19.54, reaching an all-time high the same day. However, its glory days in the hot sun came to a screeching halt as Luna 2.0 displayed lackluster performance in June.

Luna 2.0 is now down nearly 90% from its all-time high in less than a month of its inception. The newly launched token slipped to its all-time low of $1.66 during the dramatic crypto crash last weekend. The crypto is up 9% today and clawed back to $2.

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Can Luna 2.0 Fall Below $1?

Luna 2.0 has a high chance of falling below the $1 mark and moving to Cents. The revived crypto has failed to deliver the desired results and has not attracted good buying pressure in the market. Investors seem skeptical about investing in crypto as allegations of fraud against Do Kwon have piled up.

In addition, anonymous Twitter user ‘FatManTerra‘ has been uncovering bombshell allegations about the ‘inside happenings’ of Terraform Labs.

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The global markets are on the backfoot this year due to high inflation and weakening financial structures. Inflation is eating into the purchasing power of people as wages have mostly remained stagnant post-Covid-19 lockdowns. Also, fears of an upcoming recession are already making the news, and top crypto exchanges have cut down on staff.

Bitcoin may dip between $11,000 and $16,000 and could drag the remaining market. Therefore Luna 2.0 is likely to fall below the $1 mark as the market conditions are currently unfavorable.

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At press time, Terra Luna 2.0 was trading at $1.98 and is up 9.3% in the 24-hours day trade.