Terra’s price plunged to its lowest level since February as a broader cryptocurrency sell-off accelerated. LUNA fell to a low of $50.60, roughly 60% below its all-time high, and its total market capitalization dropped to approximately $19.5 billion.
Terra downward trend
Terra was not spared in the recent market-wide decline, with investors reacting to rising volatility and perceived risks by selling off holdings. Other major cryptocurrencies also slid to multi-month lows during the same period.
The combined market capitalization of all cryptocurrencies tracked by CoinGecko fell to about $1.56 trillion, down from a peak above $3 trillion that had positioned digital assets as one of the largest investable categories worldwide.
LUNA’s decline has been driven in part by selling pressure from holders seeking to limit losses, alongside concerns over weak inflows into the token. Sleeves of uncertainty across the market have compounded downward momentum.
Further bearish sentiment has been reinforced by expectations of a hawkish Federal Reserve, which has pushed some investors out of riskier assets. Equities have also been under pressure: the Nasdaq 100 is down roughly 26% from its highs this year, while the Dow Jones and S&P 500 have both retreated more than 10% from their peaks.
Terra’s ecosystem has faced significant outflows, which have amplified selling pressure on the native token. Data from DeFi Llama shows Terra’s total value locked (TVL) declined by more than 18% over a recent 24-hour period—an outsized drop compared with other chains such as Ethereum, Solana, and BNB Chain.
The network’s TVL currently sits near $20.19 billion. Many of Terra’s leading decentralized finance applications have seen TVL fall by over 20% in the past day. For example, Anchor Protocol’s TVL slipped by around 16%, while Lido and Astroport experienced declines exceeding 20%.
Terra price outlook
In a previous piece, I warned that Terra appeared vulnerable to a significant decline as chart patterns suggested downside risk. That outlook has materialized over the past few days, with the coin dropping sharply.
Technically, LUNA has slipped below both the 25-day and 50-day moving averages, while momentum indicators such as the MACD and the Relative Strength Index have reached deeply oversold territory. These readings reflect strong bearish momentum but can also precede short-term rebounds.
Given the extreme oversold conditions, a temporary bounce is possible—particularly if upcoming U.S. consumer inflation data prints weaker-than-expected, which could ease fears of aggressive Fed tightening. If a short rally unfolds, a key resistance level to monitor would be around $60.