Market’s Troubles: TRX’s Impending Doom, LUNC’s Overblown Valuation, and ADA’s Downward Spiral!
Starting with TRX, the cryptocurrency is facing a potential collapse due to issues with its stablecoin, USDD. The SEC has charged Justin Sun and his companies for fraud and other securities law violations, which has raised concerns.
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Show more +However, the market seems to be indifferent to the lawsuit as reflected in the current TRX price. The main issue lies in the collateralization of USDD. If TRX drops significantly, the collateral of USDD will be insufficient, leading to a huge depegging of the “stablecoin”. This situation is reminiscent of the Terra LUNA scenario and could lead to a similar outcome.
Moving on to LUNC, Terra Classic, it’s currently valued at a market cap of $605 million. This valuation is concerning given the project’s current state of inactivity. As a community-led project that has become stagnant, such a high valuation appears disproportionate. A more realistic market cap, considering the absence of recent development or active engagement, would be around $50 million.
However, there’s also a possibility that LUNC could go parabolic again. There’s been a downtrend break, unusual volume increase, and multiple bounces from a strong support zone. It appears that a short-term bottom may be in for LUNC, and a rally to .00014-.00017-.00020 could happen from here.
Lastly, for ADA, the previous thesis was scrapped as the price is breaking down. A new impulsive wave to the downside is probably in wave 3. The purple lines are key levels from 2018-2020, which may serve as target levels. Also, there’s a lack of RSI divergence, which is a bearish sign.
In conclusion, the market is showing mixed signals with potential collapses and rallies. As an analyst, I would advise keeping a close eye on these developments and making informed decisions based on the evolving market conditions.
