A piece of legislation proposed in the House of Representatives would put a two-year moratorium on the creation of algorithms stablecoins. According to Bloomberg’s In the latest version of the law, it will be illegal to create or issue new “endogenously parallel stablecoins”.
Letting the cat out of the bag, how are two infamous stablecoins holding up? find out…
LUNC, how are you feeling?
As of September 20, Terra Classic [LUNC] It opened at $0.000311 and closed at $0.000301, experiencing a loss of 3.12%. During the same trading session, it experienced a high of $0.000314 and a low of $0.000283. Support was holding well at $0.000233. Furthermore, volume trading showed minimal activity, but fell to 153 billion from 239 billion at the end of trading on September 20.
Coinmarketcap Showed more than 20% decrease in volume in last 24 hours. Movement in On-Balance Volume (OBV) was largely sideways, indicating less activity from LUNC.
The Relative Strength Index (RSI) appears to move along the neutral line. The Directional Movement Index (DMI) depicts the signal line above 20. However, the plus DI line was slightly down and the minus DI line moved closer to the 20 trend line. Looking at the DMI and RSI indicators, a weak bullish trend is seen with the possibility of a bearish setup soon.
Luna, is that you?
Terra [LUNA] It traded as low as %2.6 as of September 20 and did not go above $2.7 during the same trading period. Furthermore, on September 21, the token started trading below $2.7 at $2.69, with a loss of over 3%.
LUNA has struggled against resistance at $3.5 since it was last checked on September 16. The support level at $2.4 held well, but a high probability of testing it was plausible.
Volume indicated lower activity as volume decreased from 34 million to 17 million. per Coinmarketcap, volume has fallen more than 40% in the past 24 hours. The On-Balance Volume (OBV) indicator shows a lack of serious activity with the lines moving sideways with no spike observed.
The Directional Movement Index (DMI) shows the signal line above the 20 line and the minus DI line creeping above the line. In addition, the plus DI line gradually moved along the same line. This indicates a bearish move.
Bearish sentiment has been confirmed by the Relative Strength Index (RSI) moving slightly below the neutral line.
hand in hand
Both LUNA and LUNAC have experienced a downward trend in price movements since the announcement, although LUNA has declined further. Indicators also show a potentially strong bearish trend for both LUNA and LUNC.
Months have passed since the stablecoin measure was first proposed, and it was previously delayed due to concerns from Treasury Secretary Janet Yellen. Yellen called for stronger regulation of the crypto industry, citing the collapse of TerraUSD as an example.
The bill could be voted on next week.