UST has skyrocketed over the past 24 hours. The coin is getting closer and closer to regaining its dollar peg. The surge comes as Terra prepares for a reboot. The project is planning a major airdrop over the coming days. Here are some pointers:
UST had crashed nearly 90% against the dollar after it de-pegged
The coin has recovered and is around $0.8 on the dollar
However, UST continues to experience massive volatility for a stablecoin.
Data Source: TradingView
Will UST regain its peg?
Well, it is possible in fact, based on the recovery we have seen over the last two weeks, it won’t be a surprise if the stablecoin finally does it. But that’s not really the most critical point. Stablecoins are supposed to be “stable”. However, the kind of volatility we have seen in UST is just massive.
Even if the coin was to hit the $1 mark, it is likely to keep falling up and down for the foreseeable future. This will likely keep investors away. Also, this intermittent surge is probably driven by short-term buyers. These are typically investors who are trying to cash in on the latest Terra reboot. They will obviously take their profits, and UST will crash again.
So, while there is a real path for UST to hit $1, staying there will be an uphill task. Even if Terra manages to reboot successfully, restoring investor confidence in UST will be very hard in the near term.
How to trade UST?
The best way to trade UST is to focus on short-term volatility. There will be opportunities to buy dips and cash out. As of now, the coin is rallying and could get very close to the $1 mark.
When it does, short it. But good luck finding exchanges that are willing to process that trade. Do not hold UST for the long term unless it consolidates at $1 for a few weeks.
The post UST skyrockets as Terra’s 2.0 airdrop nears appeared first on CoinJournal.
