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LUNA Records 100% Growth In A Single Day. More Upside Coming?

LUNA has been on the decline since the crash of the UST rocked the crypto space earlier this month. What had been one of the most successful cryptocurrencies in the market had quickly turned sour. The digital asset had fallen from trading around the $100 level to trading a couple of zeros below $1, causing holders to lose billions of dollars. Nevertheless, a lot of investors continue to hold out hope and trade the coin, which has led to multiple rallies.

Up 100% In One Day

On Sunday, LUNA had recorded one of its most successful days since the crash. After falling to $0.0001, it had promptly rallied once more as the daily trading volume had ramped up. This saw the digital asset hit as high as $0.0002 before the end of Sunday. The 100% had no doubt sparked more interest from crypto investors that had seen more people move into the digital asset.

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LUNA’s market cap which had declined significantly last week had begun to pick up on the back of this rally. The market cap which was sitting below $1 billion as of Saturday had regained its position above this level and has now settled above $1.2 billion. 

The volume continues to remain on the high side even with the price now 99.9% lower than where it used to be a few weeks ago. Mainly, the interest in the digital asset has come from the fact that it is now highly volatile. Now, while volatility can be a quick way to lose money, it can also help investors make a lot of money in a short amount of time, hence all of the renewed interest.

LUNA price recovers to $0.0002 | Source: LUNAUSD on TradingView.com

To put this in perspective, if an investor had put $1,000 in LUNA on Saturday, by Sunday evening, they would have made a 100% return on investment. However, it is not always rosy with digital assets such as this, as $1,000 can easily turn into a pile of dust in the same fashion.

More Upside For LUNA?

There are a lot of speculations on what the future of LUNA will be. While the market is still reeling from the crash that saw millionaires lose their status in a matter of days, others have begun to settle into the new normal and have picked up trading on the digital asset.

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The digital asset continues to skew strongly in the selling territory but recent trading trends have suggested that this might begin to change. Most of last week saw LUNA trading in the red. However, the recovery on Sunday has seen indicators skew to a 72% buy sentiment. If this continues, then the upside for the digital asset may very well continue, maybe driving the price once more towards $0.0005.

Inversely, this could also be a bear trap. A recovery that convinces investors that the digital asset may continue the trend, whereas will trigger sell-offs that will cause the price to dump. If this is so, then LUNA may well add another zero to its price this week.

The cryptocurrency is trading at $0.0001913 at the time of this writing. It is up 13.28% in the last 24 hours with a market cap of $1.25 billion and a total supply of more than 6.9 trillion tokens.

Featured image from Blaze Trends, chart from TradingView.com

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LUNA Supply Nears 7 Trillion, Is $1 Still Possible?

The circulating supply of LUNA has continuously gone up since the UST debacle began. This has mainly been from people redeeming their staked UST for the digital asset, which caused its supply to rise drastically in such a short amount of time. In turn, the price of LUNA had declined to reflect the enormous amount of tokens that were being dumped into the market. Now that the dust has finally begun to settle, the question remains where the price of the asset might end up.

$1 LUNA Still Possible?

Now, it may sound comical to debate whether the price of LUNA would be able to return back to $1 given that less than two weeks ago, the price was sitting above $100. However, this is the case as the digital asset is now about four zeros short of $1 and even that seems a generous value. What is on the minds of investors now is if the price of the digital asset would ever be able to recover in any meaningful way.

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To really assess if LUNA can recover to $1, the first thing to look at is the circulating supply of the digital asset. In less than two weeks, it has grown from a little over 300 million to almost 7 trillion tokens in circulation at the time of this writing. When the supply still remained above 300 million, the price was trending at $100, meaning that its market cap at that time was averaging around $33 billion depending on the price fluctuations.

Presently, the total supply of the digital asset has now grown by more than 1,000,000% to be sitting at a little over 6.9 trillion tokens, according to CoinMarketCap. For LUNA to get to $1, it would mean that the market cap would have to touch $7 trillion, and that is if the current supply stays stable. This is presently impossible given that the whole crypto market cap at its highest was at $3 trillion.

LUNA trending low at $0.00018 | Source: LUNAUSD on TradingView.com

However, for LUNA to get to its previous market cap before the crash, the token would have to be trading at $0.005. Since a $33 billion market cap remains in the realm of possibility, it is safe to say that this is still within reach. 

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One thing to take into account though is the investor sentiment. So many people have lost hundreds of millions of dollars to the token that faith in it has been depleted. Thus, with any significant rise in price, there are set-offs that rock the token price back down.

This leads to the conclusion of this analysis which is that the price of LUNA could possibly climb back up to $0.005. But with current market conditions, this may not happen in the short-term and is entirely dependent on if the supply stops growing.

Featured image from TheNewsCrypto, chart from TradingView.com

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