Introduction

LUNA is native token of Terra network. By LUNA, users can pay Terra network fees, participate in governance, stake, and peg stablecoins.

Luna Foundation Guard has recently sold LUNA over-the-counter to raise $1 billion. This fund will be used for reserving for UST (the terra stablecoin). The question is that whether this selling at price $52 will lead to a new floor (support) level for LUNA price, or this deal has been done as a result of being already a support at level of $52.

Findings

The graph below shows the daily price of LUNA over time.

As can be seen, LUNA's price began a rally in mid-July. The price reached a peak of $52 in mid-November. Afterward, the price went down and went up to the second major peak at $74. After a while, the price went down, again, to near again $52, but soon pull back its all-time high at 100$. Since December 27th, Luna has had a downward trend to $45. The price fluctuated around $52 when the news of the Luna Foundation's $1 million raising suddenly gave it another spark.

The graph below zooms in on a shorter period of time starting on January 30, when for the first of after reaching to all time high, the price went lower 52.

The fluctuation around 52 is obvious.

The barchart below shows the number of days that the daily LUNA price has closed lower and higher than 52.

As can be seen, in past 27 days, closing the daily price lower than and higher than 52 is almost equal. During this period the price 7 times cut the level of 52.

Conclusion

• before November 30th, 2021, the price of $52 represents a resistance level for LUNA price.
• after November 30th, 2021, the price of $52 represents a support level for LUNA price.
• the fluctuation around $52 can be a result of previous resistance and support in last November and December. The very recent deal at this price level can be resulted from having such a support level rather than creating a support level. Obviously, this huge amount of selling at this price will intensify this level and create a stronger support level for the future.