Ties with LUNA plunged AVAX into a $60m loss- Decoding the mystery
It is no longer news that investors in Terra’s LUNA have been counting their losses since the collapse of the token following the depegging of the UST Stablecoin. Speaking on its own woes, the founder of Avalanche Foundation and the CEO of Ava Labs, Emin Gun Sirer in a recent interview with Forbes stated that the foundation has lost $60m following the failure of the Terra ecosystem.
He explained that the Avalanche Foundation had entered into a partnership with Terraform Labs which was aimed at improving interoperability between the two networks.
As a result of this investment and ensuing loss to the Avalanche Network, its native coin, AVAX has struggled with warding off bears since the fall of LUNA.
Let’s take a closer look into how this token has fared since 8 May when Terra’s LUNA started to fail when its stablecoin lost its $1 peg.
It has been a long 17 days of red candlesticks for the AVAX token following the collapse of LUNA. Standing at $54.3 on the day UST lost its peg, the AVAX token has since declined by 47%. Standing at $28.66 at press time with a 9% decline in trading volume in the last 24 hours.
The overall bullish correction of the crypto market was unable to save the price of the token. With no recovery in sight for the LUNA token, AVAX might be a long road from reaching its ATH of $146.22.
Source: CoinMarketCap
Movements on the price chart pointed at severe bearish bias for the token since the fall of LUNA. At 31 at press time, the Relative Strength Index (RSI) has been stuck below the 50 neutral position, deep in the oversold territory since 8 May. On a 50-day EMA, increased selling pressure was also spotted.
Source: TradingView
Within the period under review, the market capitalization of the AVAX token also
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