While trading in a market it becomes very critical for one to get to know the direction of the trend to make the accurate move to get desired results. Let me explain>>>
Why do we consider Price action as a Leading Indicator?
When someone enters the market they see a lot of charts and rapid changes in values of a currency or stock or commodity depending on the market it is, so they operate according to their expectation of upcoming events.
In other words, a person trying to profit from the market will try to predict the future of the trend and will go LONG or SHORT in their trades based on several different tools and indicators available in the platform they are using. For a price action trader, it is not important to utilize them as these indicators use data from past events.
Why is it easier to trade with price action?
Many of us might have been fed up with so many indicators and trading strategies and one of the biggest reasons for anyone to consider price action is their only trading strategy because it is going to simplify the whole process for us.
Trading seems to be very much complicated to many of us as it provides us with an enormous amount of data and hence making it all look so difficult while on the other hand if someone uses a price action-based strategy, this is going to affect their portfolio a lot in the green side.
With price action you just have to look at the charts and areas of value over there, once you’ve found it now wait for the price to come around it and when an opportunity pops us then one should enter a trade.
The Mightiest of all
One of the most powerful, simplest, and most effective trading strategies in the world is to trade with the movement of price and by marking key levels of support and resistance, In general, it is said to buy whenever price breaks over a resistance level which was tested a few times and to go short whenever the price breaks below support level which was tested in the past.
Price action signals with key levels define success
When you have a price action signal like a pin bar but you're not aware of key levels then that trading style might push you to the red zone easily, simply putting into words when you have a junction as such where you have a price action signal at a key level of support or resistance there is a huge winning potential in that trade.
A key Horizontal level can be used in any type of market if it is a bullish market, bearish market, or sideways. There are key levels that act as a magnet for the price as it attracts it before the price pushes away.
So, to what it all concludes?
The overall purpose of this whole article is to make sure one who reads this understands that everyone doesn't need to depend on indicators for their trades as they can have Price action in their arsenal, something that is going to show exactly what is happening in the market at this very moment and not like a 200 ema (exponential moving average) which utilizes a data from the previous 200 candles. If a trader only focuses on building their fundamentals strong around support and resistance then he is more likely to have a lot more winning trades than those who are based only on Indicators.
The LUNA crash in May 2022 was one of the most brutal cryptocurrency crashes ever. The crash entailed the crypto’s reserves to fall from 80,000 to 300. It left several investors shocked and many with a huge amount of losses. The crypto stablecoin tied to LUNA, UST, whose value was debugged when the crash took place, was once known as the most scalable stablecoin, but then it crashed. The crash not only took a hit on itself but also decreased the value of other crypto coins, (even Bitcoin and Ethereum) thus decreasing the value of the cryptocurrency market as a whole by almost 400 billion dollars.
Although LUNA is suffering right now, people still have hope that the cryptocurrency will make a comeback shortly and become profitable again as it once was. It will surely be long before we can see LUNA returned to its former glory. But what exactly are the possibilities of LUNA recovery shortly? Let's delve into it.
It is understandable, that at this point many investors are worried and have lost overall faith in LUNA. The promises of the LUNA developers have been falling on deaf ears. After suffering through a huge loss, they do wish that a speedy recovery takes place, but hardly any of them believes it.
What are the developers doing to increase the possibilities of LUNA recovery in near future?
The founder of the Terra network has addressed concerns that arose due to the LUNA crash in a very promising way. His plan involves strengthening the crypto and rebuilding its position.
The developers intend to increase the burn rate of the UST, thus, the initial parts of their plan involve huge amounts of Terra(USD) to be burnt. This is hoped to stabilize the coin’s value back at 1 US dollar and repeat it to the respective fiat currency (USD). This will be done by burning over 370 million UST tokens on the Ethereum blockchain.
The next part will require 240 million LUNA tokens to stabilize governance and keep control.
Currently, the entire blockchain has been completely halted, resulting in the freezing of any transactions. This was done to avoid investors from taking advantage of LUNA’s price and using this opportunity to buy up the cryptocurrency in huge amounts.
After the crash, many investors pulled their investments from this project for obvious reasons. After the above-mentioned step, the developers hope that the investors will come back by convincing them to stay on. For the aforementioned reasons, the investors are skeptical about returning as the crash has cost them losses of millions. Before the crash, it was a known fact that LUNA was doing exemplarily great in the cryptocurrency market. It was known to be one of the best-performing crypto projects in recent years. Had it not been for UST, Terra Luna would have still been one of the best-performing crypto coins. Therefore, it is up to the developers to show this to the investors and persuade them into staying on the project.
The developers would also need to address the issue of LUNA’s relationship with UST. The developers need to make and do good on the promise that such a fall (and then eventually, crash) will never happen again.
Getting back the investors is the key method of getting LUNA to recover. Should the investors be convinced enough to invest in the project, LUNA is sure to reach its recovery point, raising the possibilities of LUNA's recovery in the near future.
Metaverse will be the second internet in the future year but yet a long way to go. It’s the new virtual world after wearing VR glasses you are in a different space. In today’s world technologies are changing every sec, and companies are always surprising us with new gadgets. The use of the metaverse, completely changes the way socialize, work, or even our way of living but still, it’s a long-run process to be a reality.
But thanks to the NFT technology, we have still hope for the metaverse to grow its branches in the real world. This is the fact that with the emerging technology of the metaverse we can grow our standard of living and for many businesses, it's a new opportunity to cater market. For metaverse to smoothly work in our real world is still a big question.
HOW METAVERSE IS CHANGING THE WORLD
From no phones to smartphones and then the internet world is changing enormously and yes, we hate it or love it we are living in a time where physical contact is a decline in a growing span. Now humans can do anything with the click of a fingertip without going outside of their house. Let’s understand the benefits of the adoption of the metaverse.
CHANGES IN E-COMMERCE
E-commerce transformed from traditional shopping to online shopping but can you imagine if metaverse merges with e-commerce. You can shop virtually with the help of your avatar and can go to any stores worldwide and experience exactly like when you go shopping in malls.
CRYPTO WILL RULE
After the metaverse completely functions in our real world we will find that crypto adoption will rise in the market as with the help of crypto you can go to the international metaverse shopping and you can use your crypto regardless of which country you are in.
VIDEO CALLS WILL BE MORE REAL THAN BEFORE
In a covid crisis, we have already seen the importance of video calls to interact with our family members and close ones but metaverse adds the dimension by providing real-time space to meet our family members and feel like they are around us.
CHALLENGES FACED BY METAVERSE
Many people believe that the future of the internet is metaverse but due to the higher cost of VR sets people still feel resistance to using it and it’s not only one issue for having costly VR sets is not affordable for many of us.
HARDWARE
Until now metaverse is completely dependent on VR, and AR sets but the problem is these devices are not lightweight, portable, and affordable for everyone which makes little hard to use metaverse smoothly.
IDENTITY ISSUE
People are might different in the online world versus in the real world. Are they being same in both worlds? After using metaverse this problem will automatically arise as it uses your avatars which may be different in the real world also if your avatars may be hacked, we need to build some security protocols to smoothen the process.
PROBLEMS IN MENTAL HEALTH
It may be worked as an addiction which is not good for the health as if metaverse will lead the game there is time come no one interacts in the real world which decreases activity and the end cause many health issues like depression, anxiety, or heart diseases.
CONCLUSION
Technological change is always a revolution for humans but everything has its own positive and negative outcomes. If we focus on the internet of courses, it increases our comfort level, now we can get knowledge at our fingertips, we can order food t our doorsteps but the negative effect is people are now less social and many health issues are starting to cater.
But if we use it in a balanced way, it can cause wonders for humans and the metaverse will for sure is ready to bring a new revolution in the lives of humans.
If you guys don't know it already, Do Kwon is the CEO of Terraform Labs and also one of the co-founders of Terra. He is presently being investigated by the US Securities and Exchange Commission due to millions worth LUNA being sold. The US administrative organization is researching the illegal activities of Do Kwon. His employees, in the investigation, stated that Do Kwon used to cash out $80 million every month.
The agency stated that the US SEC supposedly found that $80 million was being pulled out monthly out of Terra's finances and sent to various wallet addresses for working expenses.
The SEC took notes about the fact that Do Kwon began the $80 million withdrawals a couple of months before the crash of Terraform Lab's token, LUNC (previously known as LUNA) and UST. This money withdrawal is being viewed as suspicious and is said to be associated with money laundering. The $80 million streamed out to many crypto wallets, yet as indicated by a key Terra worker, who was a witness to the SEC, Do Kwon haven't received any official payment from Terraform Labs.
The rumor about this withdrawal got the spotlight when a Twitter thread was shared by FatManTerra. The thread contains some details on how Do Kwon, alongside Terra influencers, figured out the way to drain assets while artificially keeping up with the liquidity.
Do Kwon, on the other hand, discredited the case of cashing out $80 million consistently for almost three years. Sharing his side of the story, Kwon expressed that the rumor of withdrawing $80 million every month is false as he actually holds the majority of his LUNA holdings, obtained during the airdrop. Besides, Kwon further repeated that his pay throughout the course of recent years has just been a cash payment from TerraForm Labs (TFL).
While these things are being heard, on the other side, even after the relaunch of the Terra chain, LUNA Classic (LUNC) and LUNA 2.0 have completely failed to recover and the prices are still dropping. The crypto experts have a negative point of view towards the price of LUNA 2.0. They stated that there is a chance of a dip below $1.5, which is about 50% below the ongoing level of price and this could happen soon in LUNA 2.0. The exchange volume has dropped, and financial backers have lost interest in the token.
Experts have indicated a negative trend in LUNA 2.0 cost. Provided that if only the prices of LUNA 2.0 crosses the $4.5 level we could possibly observe a positive trend again. So, let's hold on and see what is waiting in the future for both Do Kown and Terra.
Changpeng Zhao is the founder and CEO of Binance, which is the largest cryptocurrency exchange in the world. It became so by trading volumes. Its daily average volume is over two billion and it conducts over 14 lakh transactions every other second. It is a platform that is open 24 hours, 7 days per week. Many have reason to speculate that Zhao has suffered huge losses due to the LUNA crash resulting in Binance Founder “Zhao” with nothing left.
A few days after the crash, Zhao took to his Twitter account his thoughts, and tweeted that he was "poor again". This might hold some truth to it as Zhao stood to lose billions of dollars in cryptocurrency money following the market crash which was indirectly caused by the LUNA crash.
LUNA’s value fell from 1.6 billion US dollars to 2,200 US dollars. This fall in value took place over a month. The LUNA crash resulting in Binance Founder “Zhao” with nothing left also impacted the crypto market negatively. The collapse of LUNA caused the crypto market losses of up to 40 billion US dollars. Zhao stated that Binance held 15 million tokens of LUNA, which were obtained by the cryptocurrency exchange in return for the 3 million US dollars of investment that Binance had made in the Terra network (the network which founded LUNA).
When TerraUSD (LUNA's sister coin), which was soft-pegged to the US dollar was debugged, LUNA's value was lost too. Since the prices of both the coins are linked, when TerraUSD crashed, so did LUNA.
While claims stated that the LUNA crash resulted in Binance Founder "Zhao" with nothing left, although not entirely true or accurate, it does hold some truth to it. Despite claiming that he was poor, Zhao still has a net worth of 14.9 billion US dollars.
Another one of his tweets stated that Terra should make reimbursing its retail users their top priority.
Changpeng Zhao stated that there is always a chance of collateralization depending if you peg to one asset and use another asset as collateral. Over collateralization by 10 times can cost an equal amount of loss and nothing can be stable.
He also expressed his opinion stating that thinking excess minting of an asset leads to the increase in value of that respective asset is not the brightest idea. Minting excessive LUNA contributed to making the situation even worse because in doing so, the value of LUNA was diluted for the existing shareholders.
According to Zhao, other than excessive minting, a fierce incentives policy is another reason which contributed to the crash of LUNA. Although it attracts investors, it’s not the most ideal policy for stability.
Zhao has also stated that had Terra used its reserves to peg the cryptocurrency to the fiat currency when it fell by 5 percent, the entire incident would have been avoided and people wouldn't have had to face such huge losses, and eventually, the cryptocurrency market crash would not have taken place.
Even though Terra has put forth a LUNA recovery plan, Zhao is not impressed.
The LUNA recovery plans imply the formation of a new LUNA token on a new Terra blockchain (Terra 2.0), which is to fork from the existing Terra blockchain.
Zhao took to Twitter on behalf of the Binance team and urged the Terra team to restore the network and burn the excessively minted LUNA to recover the peg to the US dollar. This way there would be no new need for a new blockchain or a new cryptocurrency and everything will return to the way it was.
Despite Zhao's urges, Terra has chosen to go ahead with its original recovery plan to reinstate the peg.
