Why LUNA Plummeted Over 40% in the Last 24 Hours

LUNA is one of the worst-performing major cryptocurrencies by market capitalization.

Bearish sentiment in the crypto market has intensified after more than $100 billion was wiped out over the past 24 hours. The market lost over 2% of its value during that period, and total capitalization has fallen below $1.5 trillion.

Bitcoin briefly dropped to the psychological $30,000 level before bouncing back and is currently trading around $31,800 per coin. Ether remains above $2,400 and has gained slightly, rising under 1% despite the broader market downturn.

The biggest loser among the top 20 cryptocurrencies by market cap is LUNA, the original token of the Terra ecosystem.

LUNA plunged about 44% in the last 24 hours and fell out of the top 10 by market capitalization; it now sits in 13th place.

The drop followed episodes yesterday in which Terra’s UST stablecoin fell below its $1 peg twice. UST slid as low as $0.69, raising concerns over the stablecoin’s stability.

Amid the turmoil around UST, LUNA lost more than 40% of its value within 24 hours.

Key levels to watch

The LUNA/USDT 4-hour chart is among the most bearish of the top 20 cryptocurrencies by market cap.

The MACD line sits below the neutral zone, indicating bearish momentum. Additionally, the 14-day RSI at 21 signals that LUNA is currently oversold.

At the time of writing, LUNA trades around $33.05 per coin. If the bearish trend continues, the price could soon test support below $30.

However, LUNA has shown some signs of recovery in recent hours and could push past the first major resistance level at $39 before the end of the day.