December 8, 2022

A piece of proposed legislation in the House of Representatives would put a two-year suspension on the algorithm creation stablecoins. according to Bloomberg In the latest version of the legislation, it would be illegal to create or issue new “internally guaranteed stable currencies.”

With the cat out of the bag, how do the notorious stablecoins hold up? Let’s find out…

How do you feel O color?

As of September 20, TERRA CLASSIC [LUNC] It opened at $0.000311 and closed at $0.000301, suffering a loss of 3.12%. In the same trading period, it saw a high of $0.000314 and a low of $0.000283. The support was held at $0.000233. Moreover, the volume showed minimal activity in trade, but saw a decrease to 153 billion from 239 billion at the end of trading on September 20.

Source: TradingView

Queen Market Cap It showed a volume decrease of more than 20% in the last 24 hours. The movement of Unbalanced Volume (OBV) was largely sideways, indicating low activity of LUNC.

The Relative Strength Index (RSI) showed movement along the neutral line. The DMI depicts the signal line above 20. However, the DI plus line remained slightly lower and the minus DI line moved close to the 20 trend line. Looking at the DMI and RSI, a diminishing uptrend was seen with the possibility of one bearish position soon. .

Luna, is that you?

Tera [LUNA] It traded as low as 2.6% as of September 20 and can’t go higher than $2.7 during the same trading period. Moreover, on September 21, the coin started trading below $2.7 at $2.69, with a loss of more than 3%.

The resistance level has settled at $3.5 with LUNA struggling against it since it last tested the level on September 16th. The support level at $2.4 held up well, but the high probability of testing it was reasonable.

Source: TradingView

The volume indicated a decline in activities as the volume decreased from 34 million to 17 million. for every Queen Market CapVolume is down more than 40% in the past 24 hours. The On-Balance Volume (OBV) indicator showed a lack of serious activity with the lines moving sideways without any uptick.

The DMI showed the signal line above the 20 line with the minus DI line crawling over the line. In addition, the excess DI line gradually moved along the same line. This stands indicative of a downward movement.

The downtrend was also confirmed by the Relative Strength Index (RSI) with a movement slightly below the neutral line.

hand by hand

Both LUNA and LUNAC have seen a downward trend in price action since the announcement, although LUNA saw further declines. Indicators also showed a potentially strong downtrend coming for both LUNA and LUNC.

It’s been months since stablecoin action was first proposed, and it has been put on hold before due to concerns voiced by Treasury Secretary Janet Yellen. Yellen called for stronger regulation of the crypto industry, citing the collapse of TerraUSD as an example.

The bill may be voted on as soon as next week.

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