I’ve been thinking about it and the setup here is probably the best trade to take in crypto markets going into the end of the long term trend signals I had forecasted in $BTCUSD and $ETHUSD as far back as July 2020.
Weekly and daily charts , and also ratios vs $BTC and $ETH show $LUNA can perform incredibly going forward. We all are aware of Do Kwon’s stunt, to accumulate a massive $Bitcoin stash to back his $UST stablecoin, and thus reinforce the self reinforced trend present in $LUNA from the start. The last big self reinforced trend we observed in crypto was $Solana and also $Bitcoin and the $GBTC arb play that was absorbing a lot of supply and fueling speculation until the Canadian ETF launched. These trends form tremendous bubbles that George Soros describes as the ideal opportunity to build wealth when identified. The key will be identifying what breaks the self reinforced mechanism, and reverses the trend bursting the bubble that is being inflated here.

The mechanism in question makes each transaction made using Terra’s stablecoin incur a fee which is goes to reward holders of $Luna, the ecosystem’s 2nd native token. The Treasury and miners hold these tokens, so higher transaction volumes create more miner demand (which should increase the cost of attacking the network in theory) while giving the Treasury more funds to protect the stablecoin and fund discounts for Terra users who make purchases with the stablecoin (similar to cashbacks). As such, transaction growth will impact $LUNAUSD’s price via this mechanism…Can be a double edged blade, and will be interesting to see how this bubble unwinds. For now, it’s a good thing to hold considering downside risk and timing of the T@M signals present in the weekly chart.

Cheers,

Ivan Labrie.