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According to well-known cryptocurrency trader Peter Brandt, the collapse of one of Terra’s largest blockchain projects (LUNA) was inevitable. He said that a certain pattern predicted such a state of affairs, and the strategist himself has repeatedly expressed the opinion that such a scenario is possible.
The analyst stressed that the price drop was real not only because of a technical error on the part of the startup’s founders, but also because of the formation of a classic “head and shoulders” graphic pattern.
According to Brandt, such a pattern appears when a peak (shoulder) is followed by a higher price cap(head) and then another low (second shoulder). The market specialist noted that traders tend to ignore this classic pattern. However, looking at the LUNA chart, everything seems more than logical.
According to him, this once again proves the power and strength of technical analysis. The token’s capitalization, which was at $42 billion back in March 2022, collapsed to near zero in just one week. The expert said that project founder Do Kwon and his team were to blame for the situation, as they failed to prevent TerraUSD (UST) from becoming unlinked to the US dollar (USD) and stop the collapse of the entire blockchain ecosystem.
Brandt said this situation is unique to the entire cryptocurrency industry. It shows that the industry is still young and highly unstable. Investments in technology startups pose huge risks for investors.
Previously, Crypto.ru editorial staff reportedLuna Foundation Guard (LFG) assured that they will try to help investors who have lost huge amounts of money by investing in the UST stablecoin. The Foundation is organizing a compensation program. It all starts with small holders of the cryptocurrency asset.
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