LUNA Dips by More Than 12% as Bearish Sentiment Thickens

LUNA, the native token of the Terra ecosystem, is one of the worst performers amongst the top 10 cryptocurrencies by market cap.

Terra is an algorithmic stablecoin platform, which runs on a Proof of Stake (PoS) blockchain infrastructure built with Tendermint.

The native token of the ecosystem is LUNA, and it is used in the issuance of stablecoins (TerraSDRs) for staking and network governance and also as a price stability mechanism.

In addition to LUNA, the Terra ecosystem also houses its stablecoin called UST.

Total Crypto Market Cap Stays Above $1.6 Trillion

LUNA is currently the ninth-largest cryptocurrency by market cap. Amongst the top 10 cryptocurrencies by market cap, LUNA is the worst-performer, losing more than 10% of its value in the last 24 hours.

The coin has lost over 30% of its value in the past seven days and currently trades above $50. There is no major catalyst behind its bearish performance except the broader cryptocurrency market underperforming in recent weeks.

The total cryptocurrency market cap remains above $1.6 trillion after rallying past $1.7 trillion earlier this week. Bitcoin and the other major cryptocurrencies have been stagnant over the past 24 hours, with BTC still trading around $36k per coin.

LUNA Could Drop Below the $50 Level Soon

The LUNA/USD daily chart is extremely bearish, thanks to the coin’s recent performance. The technical indicators show that LUNA is currently struggling and could drop lower over the coming hours.

At press time, LUNA is trading at $51 per coin, below the 50-day trading average of $76. The RSI of 32 shows that LUNA is currently in the oversold region. The MACD is below the neutral zone, indicating a selling pressure on LUNA at the moment.

If the bears remain in control, LUNA could drop below the $50 psychological level over the coming hours.