Can Terra LUNA bounce back and hit the $120 mark again?

    Do Kwon’s proposal to fork LUNA Terra onto a new network has been criticized by the Binance CEO and cryptocurrency proponents. The Luna Foundation Guard spent $3 billion to stabilize the TerraUSD peg, however the UST failed to recover.

    LUNA Terra struggles to recover despite fork plan

    The Luna Foundation guard has spent billions of dollars to restore the TerraUSD (UST) peg. However, the UST price is struggling to come back. At the time of writing, UST is valued at $0.082, down 91.8% from its $1 peg.

    Do Kwon, the CEO of the Terraform Lab, came up with a plan to recover the Terra tokens. The Council of the Guardians of the Lunar Foundation proposed to fork LUNA onto a new chain using a snapshot taken before the attack on the blockchain.

    The recovery plan proposes a cap of 1 billion coins, of which 900 million new chain tokens are set aside for the return of LUNA and UST holders prior to the unbind and chain hold event, and the last tranche of 100 million to be put into the network genesis state.

    Kwon has asked community members to be patient as Terraform Labs is working on multiple tasks to stabilize UST, replicate it, and ensure recovery in LUNA.

    However, the CEO of CryptoQuant revealed that market makers, including those hired by LFG, sent 84,000 BTC, equivalent to $2.5 billion, to several exchanges last week. It is not clear if BTC tokens were sold, but it is likely that Coinbase has digested much of the pressure from the sellers, and attempts to restore the UST algorithmic stable coin have failed.

    Larry Cermak, vice president of research at WBlock, noted that LFG's holdings have increased from $3.1 billion a week ago to $87 million now as the nonprofit has spent almost $3 billion protecting the UST peg. Despite efforts, the stable coin collapsed.

    VisionPulseTrades assessed LUNA's price trend and found that if a bottom is reached, LUNA needs to gain investor confidence to initiate a trend reversal. If so, then the next bullish target is capped at $0.00025 to $0.00033.

    Therefore, a recovery to $120 is unlikely for LUNA as VisionPulseTrades highlights that demand for the token comes from investors looking to recover and buy Terra LFG.

    The collapse of Terra LUNA pulled the entire crypto market with it

    After the collapse of Terra LUNA, most crypto assets suffered heavy losses. What's Next for Bitcoins?