Introducing the token for the day
The token I will be talking about today is LUNA.
LUNA is the native token of the Terra Blockchain. The Terra blockchain is a protocol that allows for the minting and usage of stable coins around the world. Stable coins can be minted to represent any currency in the world and can be swapped with one another to represent their real-world value. For example, UST can be swapped with EUT in he current exchange rate but on the blockchain. An algorithm ensures that these stable coins maintain their pegged value, that is, 1 UST = 1 USD.
Now, LUNA plays an important role in the Terra blockchain. Holders of the LUNA token can conduct a democratic vote to decide what stable coins would be minted on the blockchain. The LUNA token is then used to keep the coins pegged to their currencies by a deflation and inflation mechanism. Holders of the LUNA token also receive rewards from transaction fees on the blockchain.
Terra and LUNA were developed by Daniel Shin and Do Kwon. Some of the team members include;
Why I am optimisic about the project today/Analyzing the Coin
I already bought LUNA but I saw an opportunity to sell during a downtrend and buy cheaper. For the analysis, I used a 5-minutes chart on TradingView. The currency pair is LUNA/USDT.
From the image above, I loaded the MACD indicator. The MACD had made a bearish cross which would normally indicate a downtrend. So, I sold the LUNA I had on Binance. The price was 20.88 USDT for 0.23 LUNA. The take profit is 88.51 while the stop loss is 92.37.
After a while, a bullish cross formed on the MACD and eventually my stop loss was hit. I went back to Binance and bought the LUNA back at a price of 21.21 USDT for 0.23 LUNA. This makes a loss of 0.33 USDT.
My Plan to Hold LUNA long or Sell
Honestly, I really do not plan to hold LUNA for long. My main reason for this is that, according to my research, the Terra blockchain has had several issues especially with maintaining currency peg. This greatly undermines the use case of the project.
Another reason I will not hold LUNA is that I do not know much about the project and the team behind it. I would not want to invest in something I do not know much about.
Would I recommend LUNA to people
I would not advise people to buy LUNA. This decision is personal because as I stated earlier, I do not know much about the project. Anyone who wishes to invest in LUNA should do proper research and invest wisely.
Conclusion
Today, I have made a post that briefly describes LUNA and the Terra project. I have also done some analysis on LUNA and made trading decisions accordingly.
Thank you!