- After a court declared LUNA and MIR security, LUNC’s price dropped.
- The token may reverse to the upside as soon as the development goes off the radar.
The price of Terra Classic [LUNC] decreased by 5.42% in the last 24 hours. This was after a U.S. District 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, opining that the now-collapsed LUNA was a security.
Per the filing, Do Kwon, the embattled co-founder of the company was also accused of orchestrating the sale of the securities. A look at the new ruling showed that the judge in charge of the case sided with the SEC.
LUNC turns bearish afterward
Judge Jed Rakoff, the judge in charge of the case concluded that Terraform Labs failed to register both LUNA and MIR as securities. Hence, the reason for the summary judgment.
Though the LUNC team had distanced itself from Do Kwon, it has not been easy to dissociate the token from developments related to the May 2022 LUNA-UST collapse. At press time, the Weighted Sentiment around LUNC had dropped to -0.517.
Weighted Sentiment shows the unique positive/negative commentary market participants have about a project. When the metric is positive, it suggests that market players are bullish on a project.
So, LUNC’s Weighted Sentiment implied that the market is bearish on the token in the short term.
Source: Santiment
Concerning Social dominance, AMBCrypto’s analysis of Santiment’s data showed that the metric spiked on the 29th of December. The hike in Social Dominance meant that there was an increase in attention given to LUNC in the wake of the news.
However, press time data showed that the metric reading had decreased. The initial increase suggested that LUNC’s price may have hit the top. But the quick decline that the price was no longer overheated.
LUNC prepares to turn
Irrespective of the current condition, it might be difficult for LUNC to replicate its performance four weeks back. During that time, the price jumped double-digits due to speculation that Terra’s collapsed stablecoin could be revived.
From the LUNC/USD daily chart, the token trended downwards. The downtrend was proof that sellers were letting go of the token following the court ruling. However, the Relative Strength Index (RSI) showed that LUNC was heading to the oversold region.
The indicator had also formed a negative divergence which typically foreshadows an uptrend. Should the RSI close in on a 30.00 reading, then LUNC may reverse to the upside.
Further, the Exponential Moving Average (EMA) indicated a bullish bias for the cryptocurrency.
This was because the 20 EMA (blue) had crossed over the 50 EMA (yellow). If that remains the case as the selling pressure continues, it might take only a short while before rises in the $0.0002 direction.
Source: TradingView
How much are 1,10,100 LUNCs worth today?
However, traders should look out for the forthcoming trial involving the parties mentioned above.
This is because some of the decisions might influence LUNC as it did in recent times.
