LUNA/BUSD Daily cautiously bearish. *Do Kwon published Recovery Plan Part 2 today and if the proposal is passed on 05/18, a hard fork will commence on 05/27 and Luna as we know it will be forked into Luna Classic and Luna (similar to what happened in 2016 with the Ethereum DAO hack that led to the Ethereum Classic and Ethereum fork)*. Recommended ratio: 6% LUNA, 94% cash. Price is currently still experiencing extreme volatility at fractions of a cent and will likely continue to do so even with the news of the updated proposal because it is a highly divisive proposal in its current state which creates a lot of uncertainty still on whether or not the proposal will pass on 05/18. Volume continues to be very high and is on track to favor sellers for the second consecutive session if it closes today in the red (there was even a slight uptick of selling after the updated proposal was released). Parabolic SAR flips bullish at $30.38 minor resistance, this margin is bullish. RSI continues to trend sideways in a flatline at the ATL of 14.25 for what is now a six session streak. Stochastic is also on a six session streak of trending sideways in a flatline at max bottom. MACD remains bearish and continues to be forming a trough, it has maintained yesterday's new ATL at -24.65 and would need to reach -18.21 for a bullish crossover; this is bullish. ADX continues to trend up slightly at 45 as Price continues to trend close to 0; if it forms a Peak it would be mildly bullish and if it were to continue up it would remain bearish. Considering there is very little Price history as these levels, if Price is able to get above $0.01, the next likely target is a test of $0.027 resistance. The other scenario is that it remains bearish and trending close to 0 until an agreeable recovery plan is decided. Mental Stop Loss: (one close above) $0.01.
**The proposed hard fork is creating a lot of division within the community regarding the priority of who should be compensated for their losses in addition to whether or not a fork should happen at all... due to this, a lot of volatility is to be expected in the coming days as the picture becomes clearer as to the future of the Terra ecosystem**
If a fork happens have will happen to Luna classic?
dailytaguy
⋅
@Bhlink, if Recovery Plan 2 is passed on 05/18 in its current form... Luna Classic will be the Terra you know today, with UST still a central part of the ecosystem, whereas Luna will be the new Terra without UST... the details are still unclear though
BoogeyCrypto
⋅
@dailytaguy thank you! If the plan passes do you think luna classic will have any function and will it be worth holding in terms of trading ? Or will it go to zero ?
dailytaguy
⋅
@BoogeyCrypto, if the plan passes, as of yesterday it would mean that the community would be divided amongst those that wanted the fork and those that didn't... Luna Classic would likely comprise of investors and developers who didn't want the fork and still believe that burning Luna to regain the UST peg is feasible, which is more than likely to fail but still has a very small chance to succeed... Luna would comprise of investors and developers that believe in the Terra ecosystem being more than just a platform for UST and have therefore decided to fork the chain to create a new version of Luna without UST