Traders are questioning whether the price rally towards $0.00058 is still possible for Terra Luna Classic (LUNC) in light of the jury’s decision holding TFL and Do Kwon accountable for fraud in the SEC case.
Terra Luna Classic (LUNC) Legal Battle
The jury found Terraform Labs and Do Kwon liable for fraud. This marked the conclusion of the U.S.-SEC case, which ruled in favor of the SEC in the civil case. Despite this, the CEOs and Terraform are deeply dissatisfied with the decision and are considering other options and next steps, further claiming that the SEC lacks the legal grounds to initiate this case. As a consequence of this legal battle, traders are contemplating whether LUNC’s price can still ascend after it experienced a 2% downward plunge to the critical support level.
Can Terra Luna Classic Reach $0.00058 Mark?
According to analyst Javon Marks, there is still ample potential for LUNC’s price to surge due to its formation of a bullish pattern. By the end of the bull market, he foresees Luna Classic’s price rising by over 270%.
Marks specified $0.00058 as the target price during the bullish phase. He anticipates that the next upward breakout will be substantial due to the bullish pennant formation in the long term. He expects this breakout to occur around mid-April, coinciding with Bitcoin halving, pushing LUNC towards $0.0005.
$LUNC (Terra Classic) remains in a technically bullish state and can be setting up for a MASSIVE CONTINUATION towards the first $0.00058046 target but based on the previous breakout, these levels can be greatly exceeded!
A more than 4.05X could be on the way… https://t.co/oU1gWadL6p pic.twitter.com/scYNNboVnd
— JAVON⚡️MARKS (@JavonTM1) April 4, 2024
LUNC faces significant resistance at the $0.0002 psychological level. It has already reached a high of $0.000255 in early March, and the community anticipates a retest of that level amid the bull market. The $0.000125 level remains a major support.
Terra Luna Classic (LUNC) is currently trading at $0.000132, above the support level. The 24-hour low and high are $0.0001319 and $0.0001372, respectively. Moreover, LUNC and 1000LUNC futures open interests have been rising in the last few hours, indicating a recovery in price. In the last 4 hours, futures OI has increased by 2%. The futures and spot traders provide enough support for further upside momentum during a broader crypto market recovery.
Why was Do Kwon found guilty?
According to the verdict, Terraform Labs and Do Kwon misled investors regarding the algorithmic stablecoin UST. The company also claimed that the Korean payment system Chai uses its technology. Gurbir Grewal, director of enforcement at the SEC, noted the significant losses that investors suffered due to Terra’s deception. He also called on cryptocurrency companies to prioritize compliance with laws and investor protection.
“We are pleased with today’s jury verdict finding Terraform Labs and Do Kwon responsible for a massive cryptocurrency fraud. Terraform Labs and Kwon, its former CEO, deceived investors about the stability of crypto assets and the so-called algorithmic stablecoin Terra USD. Through this deception, defendants caused catastrophic losses to investors and wiped out tens of billions in market value virtually overnight,” Grewal said .
However, Terraform Labs said it was disappointed with the verdict because it “does not believe the evidence supports it.” “We continue to maintain that the SEC does not have the legal authority to bring this case, and we are carefully weighing our options and next steps,” the company added .
For Do Kwon, the jury’s verdict establishes civil liability. Let us remind you that the former CEO of Terraform Labs is simultaneously facing separate criminal charges in the United States and South Korea.
