The crypto winter in January has seen many coins lose value. However, even though we are starting to see some price stability in the broader market, Terra (LUNA) appears to be going against the trend. The coin is quite literally on free fall right now so it begs the question, is it a good buy? Well, more on that below but here are some highlights:
In the last month alone, LUNA has seen a sharp decline, falling by nearly 50% during the period.
At press time, LUNA was trading at $45, down 8% for the day and down nearly 25% over the past week.
The negative sentiment, mostly associated with Terra’s connections with Magic Internet Money (MIM), will continue in the near term.
Data Source: Tradingview.com
Is a recovery in sight for LUNA?
Right now, it is quite possible that the free fall will continue at least in the foreseeable future. Besides, some investors are raising concerns that the Terra ecosystem could be in danger due to its association with the Anchor Protocol and MIM.
Also, we are still not sure if the storm has passed in the crypto market. Even with gains in the last few days, there is still a lot of downside risks here that could have a massive impact on the LUNA price action. For this reason, we expect the coin to slip further in decline over the coming days.
Is it time to buy Terra (LUNA)
As a major coin in the crypto market, LUNA is of course worth having. But as the sell-off continues, it may not be the most ideal time to get in right now. Give it a week or so and see how the price plays out. If it dips even further, then you can buy and avoid any serious downtrend. After all, from a long-term point of view, LUNA is a must-have.