How to trade the LUNA token in the current situation. Analyst’s view

Michaël van de Poppe gave a prediction on the rate of the native token of the Terra blockchain ecosystem

07.06.2022 - 15:40

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The material is not an investment recommendation and is published for information purposes only.Cryptocurrency analyst Michaël van de Poppe said that the native token of the Terra (LUNA) project is unable to maintain bullish momentum. He noted the cryptocurrency’s rate downward trend. According to him, if the coin falls below the $6 mark, a scalping strategy at the $4,5-$5 could be considered. As of June 7, 14:30 UCT, the LUNA token is trading at $4,29, the asset’s price dropped by 16,07% in 24 hours (according to Binance).

Scalping is a popular strategy in the cryptocurrency market, which a trader uses when there are small fluctuations in the rate of an asset during the day to make a profit.

Van de Poppe also believes that it is possible to open short positions in the conditions of the fall of the LUNA rate.

Short positions are trades that traders open to profit from a decrease in an asset’s rate.

The analyst reported that in the event of a bounce in the LUNA price above $6,6, he would be interested in long positions.

Long positions is a strategy in which a trader buys a digital asset in the hope that its rate will rise in the long run.

After the crash of the Terra ecosystem, when the UST algorithmic stablecoin and its backing token LUNA collapsed to almost zero, the decision was made to create a new network. The launch of Terra 2.0 blockchain, with the issuance of new LUNA tokens and the listing of the asset on crypto exchanges, took place on May 28. The old network was named Terra Classic (LUNC), and the LUNA ticker moved to the new token.

A full timeline of events after the project’s “revival” can be checked in GetBlock Magazine’s special feature.

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