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Terra Luna Classic (LUNC) is trading at $0.000090, up 2.12% on the day. The crypto is trading 12.72% above the recent swing low at $0.00007978, as digital market participants expect it to display an extended recovery.
The altcoin’s price volatility has been reducing, leaving traders wondering which direction the price action will take next.
Let’s delve into Terra Luna Classic’s price action and examine which trajectory it may take in the near future.
Jump Trading faces lawsuit over alleged $1.3B profit from TerraUSD
Jump Trading, an Illinois-based proprietary trading firm, has been accused of conspiring to manipulate the price of TerraUSD (UST) following the stablecoin’s unprecedented collapse, according to court filing documents.
The court documents filed on May 9 reveal that Jump Trading colluded with Terraform Labs to artificially inflate the price of the now-defunct TerraUSD (UST) stablecoin.
According to the documents, the trading firm bought millions of UST tokens in 2021 with the aim of artificially inflating thes tablecoin’s price to $1.
👀 @jumptrading faces lawsuit over alleged $1.3B profit from TerraUSD. Plaintiff Taewoo Kim is accusing Jump and its CEO, Kanav Kariya, of violating the Commodity Exchange Act, Commodity Futures Trading Commission regulations, and of common law unjust enrichment#WingsInsights pic.twitter.com/aZSpVgLoHo
— Wings Insights (@WingsInsights) May 14, 2023
Plaintiff Taewoo Kim, claims that Jump and its CEO, Kanav Kariya, committed violations of the Commodity Exchange Act, CFTC regulations, and common law unjust enrichment.
According to the filing, Jump Trading was an early backer and partner of Terraform Labs. The firm has signed multiple contracts with the blockchain company and its subsidiaries from November 2019 through September 2020 to “borrow tens of millions of LUNA tokens” and “supply market-making services for transactions in LUNA, UST, and aUST.”
These deals, therefore, gave Jump Trading:
the chance to acquire LUNA tokens at a significantly reduced price, which could then be sold back into the market to boost Jump’s own profit.
The legal action against Jump Trading and Terraform Labs could significantly impact the price of Terra Luna Classic (LUNC). This is because the case casts doubt on the legitimacy of the practices used in trading and market-making of the Terra Luna Classic tokens. This could potentially lead to the loss of trust amongst investors.
Noteworthy, the news of the lawsuit could cause panic selling among LUNC holders, leading to a drop in the token’s price.
Nevertheless, it is important to understand that these are just possible scenarios. The real impact of the case on the LUNC price will depend on several other factors including the outcome of the lawsuit, the prevailing sentiments around the token and the status of the broader crypto market.
Note that after dropping 15% on May 9 when the news broke, LUNC has been recording higher lows, indicating resilience amongst the bulls.
Terra Luna Classic price seeks to break out of consolidation
After setting a swing low at $0.00007978, LUNC price has been recording a series of lower highs and higher lows. This price action has led to the appearance of a pennant on the daily chart.
This points to decreasing volatility with a breakout expected in either direction. A breakout is confirmed when a daily candlestick close is achieved either above or below the chart pattern.
The target is set by measuring the distance between the highest and the lowest point of the technical formation and adding it to the breakout point in either direction.
Therefore, LUNC price may move upward if it produces a decisive close above the pennant’s resistance line at $0.000091. If this happens, the price would rise above the descending trendline, collecting the liquidity above it to reach the optimistic target of the governing chart pattern at $0.0001065. Such a move would represent a 17.19% climb from the current price.
LUNC/USD Daily Chart
Supporting the positive outlook for Terra Luna Classic was the upward facing Relative Strength (RSI). This suggested that buyers were re-entering the market.
In addition, the bars on the Awesome Oscillator (AO) had flipped green as this trend-following indicator moved toward the midline. Note that LUNC’s upward trajectory will gain momentum once the OA crosses the neutral line into the positive region.
Remember, Terra LUNA Classic could also move in favor of the bears. Note that the descending trendline has been suppressing the price since April 29. The Simple Moving Averages (SMAs) were also positioned above the price, further adding to the headwinds.
The SMAs were also facing downward. This together with the position of the RSI at 37 implied that the sellers were more in control of the Terra Luna Classic price than the buyers.
Therefore, LUNC could turn down from the current price to seek solace from the pennant’s support line at $0.000087. Breaching this level would spell doom for the Layer-1 token with the first line of defense being the $0.000085 level.
Additional support areas could emerge from the $0.000082 level and the $0.000080 psychological level, before reaching the bearish target of the governing chart pattern at $0.00007242. This would bring the total losses to 20.35% from the current price.
Promising Alternatives To LUNC
Those seeking to place their shot or long bets on Terra Luna Classic would have to wait for a clear breakout either below or above the pennant.
While looking out for this movement in LUNC price, investors might be interested in new cryptos in presale with low risk-reward ratio but with the potential to make 10x investment returns.
One such crypto is yPredict, one of the new AI crypto projects that provides a blend of Artificial Intelligence (AI) and blockchain technologies to give crypto traders an edge in the market.
AI powers the new project to provide accurate crypto analytics and trading strategies beyond human capacity.
Its native token $YPRED is currently in stage 5 of the presale stage with the team behind the project already having amassed over $1 million as more investors prepare for its explosive growth.
📢 Big news! While AI Coin Crypto prices are taking a hit, #YPRED is standing strong! We're nearing an impressive milestone of $1 Million raised! 🎉
🚀 Your trust in our AI-driven platform fuels our progress. Thank you for your support! Join the success wave at… pic.twitter.com/ZtiheSLSXR
— yPredict.ai (@yPredict_ai) May 13, 2023
Each $YPRED token is going for $0.07, with the price increasing at every new stage. By the next stage, the token will be worth $0.9 and continues adding until it lists on exchanges at $0.12.
This means, if you get in on the presale at the current stage, you will be able to get 71% profit once the token gets listed on exchanges.
Visit yPredict here to buy your $YPRED tokens before the next price increase.
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