Dr. Avalanche, Mr. The Story of Terra and the Luna Foundation Guard Reserve


a week ago tera [LUNA] A little above $80, as investors lamented their faith. However, at the time of reporting, I-Top 10 Cryptocurrencies Replaced Bloody Hands for $0.00005687. Naturally, this fall’s shock has many new and confused investors looking at their favorite altcoin projects and wondering if they’re likely heading in the same direction.

during an avalanche [AVAX] This question was raised again when it lost more than 30% of its value in one day.

Are you going to pick up Terra?

At the time of the report, AVAX was the 12th largest cryptocurrency by market cap. $34.26. This follows a decline of 40.75% last week after rising 25.27% on the 1st. So will AVAX co-locate with LUNA?

Metrics show that this is not possible for several reasons.

First of all, it is important to remember that Avalanche has no affiliation with an algorithmic stablecoin comparable to TerraUSD. [UST] and terra [LUNA]. LUNA helps absorb UST fluctuations, but both currencies have since collapsed. Avalanche isn’t even far from a similar situation.

AVAX development activity declined at the time of reporting, but was still strong and maintained its position between the 10-30 range at the time. In fact, development activity at the time of reporting was higher than when AVAX was trading at around $70. This is a sign of faith in the ecosystem.

source: Santiment

If there is not enough evidence dev. The number of active contributors was increasing despite the decline in the price of AVAX. In fact, on May 10th, the metric actually hit an all-time high of 18 on the network.

Avalanche AVAX 12.46.10 13 May 2022

source: Santiment

However, one thing investors should note is the $100 million AVAX Terra wanted from the Avalanche Foundation. At press time, the Luna Foundation Guard reserve was approximately $76.4 million. Of this, 1.97 million AVAX ($67.81 million at press time) accounted for about 88.8% of the reserve.

At the time of the report, there were no bitcoins in the reserve.

Screen Shot 2022 05 13 at 14.26.51

source: LFG reserves

don’t look up [or down]

But what do the price indicators say about AVAX? Diverging Bollinger Bands Warn of Upcoming Volatility But Relative Volatility Index [RVI] Values ​​below 50 suggested that future volatility could lower the asset’s price.

Finally, the Awesome Oscillator [AO] At press time was putting up a growing red rod. This indicates that Avalanche may need much more than a green candle on May 13th to fight the bear.

AVAXUSD 2022 05 13 12 48 23

Source: TradingView

Leave a Comment