LUNA is one of the worst performers among the major cryptocurrencies by market cap.
The bearish sentiment in the market intensified as the market lost more than $100 billion in the past 24 hours. The crypto market has lost more than 2% of its value in the past 24 hours and the total market capitalization is now below $1.5 trillion.
Bitcoin briefly fell to the psychological $30,000 level before bouncing back to where it now trades at $31,800 per coin. Despite the bearish state of the broader market, ether continued to trade above $2,400, up less than 1%.
However, the biggest loser among the top 20 cryptocurrencies by market cap is LUNA, the native token of the Terra ecosystem.
LUNA is down 44% in the past 24 hours and has lost its place in the top 10 cryptocurrencies by market cap. The coin is now ranked 13th in the market.
The bearish performance came after Terra’s UST stablecoin fell below its dollar-pegged exchange rate twice yesterday. UST fell to $0.69 yesterday, raising questions about the stability of the stablecoin.
UST’s woes caused LUNA to lose more than 40% of its value in the past 24 hours.
Key Levels to Watch
The LUNA/USDT 4-hour chart is one of the most bearish among the top 20 cryptocurrencies by market cap.
The MACD line is below the neutral zone, indicating bearish momentum. Additionally, the 14-day RSI of 21 shows that LUNA is currently oversold.
At press time, LUNA is trading at $33.05 per coin. If the bearish trend continues, it could break below the $30 support soon.
However, LUNA has shown signs of recovery over the past few hours and could break above the first major resistance level at $39 by the end of the day.