LUNA Price Prediction: LUNA Drops to $1.3 After Announcement of Do Kwon's Arrest. Can LUNA Reclaim its Footing?

LUNA Price Prediction: LUNA Drops to $1.3 After Announcement of Do Kwon’s Arrest. Can LUNA Reclaim its Footing?

Updated: 27 March 2023

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The recent arrest of Terra co-founder Do Kwon has had a negative impact on the price of Terra Luna (LUNA), which plummeted by 8% following the news. Kwon had been on the run since the Terra-Luna crisis but was finally apprehended in Montenegro on March 23rd.

$LUNC & $LUNA Enter a new era as Do Kwon arrest is confirmed to be true. pic.twitter.com/p1BPXJoeFE

— Classy ? (@ClassyCrypto_) March 24, 2023

As a result, LUNA’s value dropped to $1.27, representing an 8% decline over the past 24 hours. The Terra Luna project suffered a catastrophic collapse in May 2022, almost ten months ago. Following that, major crypto exchange FTX experienced a similar fate in November 2022, and more recently, the crypto-friendly Silicon Valley Bank (SVB) also collapsed.

The introduction of stablecoins such as UST aimed to protect investors from the volatile price fluctuations of cryptocurrencies like Bitcoin. These coins were pegged to a fiat currency or a cryptocurrency like Luna to promote price stability and the decentralized cryptocurrency model.

LUNA Market Price Analysis

At the time of writing, the price of Terrra (LUNA) stands at $1.30, with a 24-hour trading volume of $25,262,014. This indicates a decrease of 1.95% in the past 24 hours and a 12.06% decline in the last seven days. Terra’s market cap is valued at $312,572,335, with 240 million LUNA tokens circulating, making it the 132nd largest cryptocurrency on CoinGecko.

LUNA Price Chart. on 27/3/2023 — LUNA Price Chart. Source: CoinGecko.com

LUNA’s circulating supply is multiplied by its token price to determine its market capitalization. Furthermore, the fully diluted valuation (FDV) of Terra (LUNA) is $1,390,055,962, representing the maximum market cap based on the 1.1 billion ETH tokens currently in circulation.

In the last seven days, Terra (LUNA) has underperformed the global cryptocurrency market, down by 0.50%, with a 12.00% decrease. Most users (51%) are pessimistic about Terra (LUNA) today, indicating a bearish market sentiment toward cryptocurrency.

Previous LUNA Price Analysis

In the previous analysis, the drop in the value of LUNA had an adverse effect on its technical analysis, which indicated a bearish trend. However, in terms of short-term prediction, LUNA’s 50-day simple moving average (SMA) value was $1.71, while its 200-day SMA value stood at $12.54 for the long-term forecast. Both values were above the cryptocurrency’s market price at that time.

The price of LUNA was recovering in a consolidation state. After hitting the bottom support level at $1.26, the bulls took over and pushed the price to the previous resistance level of $2.5. However, the price trading below the moving averages indicated that the bulls needed to exert a lot of pressure to break above and reach the resistance level.

On the other hand, LUNA’s relative strength index (RSI) value of 43.42 indicated that the digital asset was in the underbought region. Although LUNA’s technical performance was moderate at that time, it had the potential to rebound and gain steady momentum, which could lead to a surge in its price and help the asset reach new levels at $3.04.

Luna Price Prediction: LUNA/USD Daily Chart Analysis

The price of LUNA is still trading in the consolidation zone. The price is back in the support zone after a brief bull show last week. However, the news about Don Kwon’s arrest has seen the coin fall back to its bottom. LUNA is also trading below the 50-day and 200-day moving averages, indicating the trend is strongly bearish.

The relative strength index (RSI) is trading on a bearish move below the 50-level mark at 38. Based on the above, the price of LUNA might consolidate further along the support level in the ranges of $1.29 and $1.25. However, if the price breaks upwards, we predict the price of LUNA to reach $2.05 and a further $2.40, respectively.