Journalist
Posted:
- After a court declared LUNA and MIR certain, the price of LUNC fell.
- The token may turn upward once the development disappears from the radar.
The price of Terra Classic [LUNC] fell by 5.42% in the last 24 hours. This was after a US court ruled in favor of the SEC and against Terraform Labs.
Terraform Labs is the startup behind Terra, the blockchain where LUNC is hosted. In February, the SEC charged TerraformLabs, who believed that the now-collapsed LUNA was a security.
Do Kwon, the company’s controversial co-founder, was also accused of orchestrating the sale of the securities, according to the filing. A look at the new ruling showed that the judge in charge of the case sided with the SEC.
LUNC then turns bearish
Judge Jed Rakoff, the judge in charge of the case concluded that Terraform Labs has failed to register both LUNA and MIR as securities. Hence the reason for the summary proceedings.
Although the LUNC team had distanced itself from Do Kwon, it was not easy to separate the token from the developments surrounding the collapse of LUNA-UST in May 2022. At the time of writing, weighted sentiment around LUNC had fallen to -0.517.
Weighted sentiment shows the unique positive/negative commentary that market participants have about a project. When the measure is positive, it suggests that market players are optimistic about a project.
Thus, LUNC’s weighted sentiment implied that the market is bearish on this front in the near term.
Source: Santiment
Regarding social dominance: AMBCrypto’s analysis of Santiment’s data showed that the statistic peaked on December 29. The rise in social dominance caused more attention to be paid to LUNC in the wake of the news.
However, press time data showed that the metric had declined. The initial rise suggested that LUNC’s price may have reached the top. But the rapid decline meant the price was no longer overheated.
LUNC prepares to turn
Regardless of the current circumstances, it may be difficult for LUNC to repeat the performance of four weeks ago. During that time, the price rose by double digits due to speculation that Terra’s collapsed stablecoin would be revived.
From the LUNC/USD daily chart, the token showed a downward trend. The downward trend was evidence that sellers abandoned the token after the court ruling. However, the Relative Strength Index (RSI) showed that LUNC was heading into oversold territory.
The indicator had also formed a negative divergence, which usually predicts an uptrend. If the RSI approaches a value of 30.00, LUNC may turn upwards.
Furthermore, the Exponential Moving Average (EMA) indicated a bullish bias for the cryptocurrency.
This was because the 20 EMA (blue) had crossed the 50 EMA (yellow). If that continues as the selling pressure continues, it could only be a short time before the price rises towards $0.0002.
Source: TradingView
How much are 1,10,100 LUNCs worth today?
However, traders should look forward to the upcoming trial involving the parties mentioned above.
This is because some decisions can affect LUNC, as has been the case recently.