It is starting to be apparent that algorithm stable coins are toxic and verging on Ponzi schemes. I was not aware of UST, LUNA's based stable coin, until somebody pointed out to me that it is the reason that Luna is tanking. Although initially Luna was dropping because of weakness in the market, it probably triggered a run on the money for UST and the algorithm could not stabilize UST which caused further panic and selling, a vicious cycle sinking both Luna and UST together. This is my impression at the moment and I would be very interested in detailed study and explanation of what happened.
Just as an exercise and fun let's try to predict UST next move using technical analysis. We can see a double bottom/ harmonic forming and the technicals pulling out of oversold. I am predicting a move of UST to the channel's resistance at 0.71. Let's see.
Just as an exercise and fun let's try to predict UST next move using technical analysis. We can see a double bottom/ harmonic forming and the technicals pulling out of oversold. I am predicting a move of UST to the channel's resistance at 0.71. Let's see.
Comment:
Two days ago Luna's supply was 0.3 billion, today 70 Billion. Still less than Doge and better than the Federal reserve speed of printing dollars.
