LUNC Rises 4% To $0.000124

Terra Luna Classic price trades at $0.000125 with a bearish bias on Wednesday. This is the second bullish session as the LUNA 2.0 token seeks to shake off the bearish sentiments that have weighed it down over the past week following news of the founder Do Kwon’s arrest. The technical setup shows that LUNC could be readying for a breakout as it escapes from a bearish chart pattern.

Factors Affecting LUNC Price Action

LUNA Classic’s recent trend and price action can be attributed to a number of factors. One important determinant is the recent arrest of Do Kwon, the founder of Terraform Labs and the Terra ecosystem. Do Kwon is facing multiple charges from US prosecutors, including eight counts of fraud and criminal acts. South Korean authorities are also set to bring charges against him even as they continue their man-hunt for Shin Hyun-Seong (Daniel Shin), Terra’s co-founder.

Do Kwon was finally arrested last week in Montenegro after months of being on the run following the collapse of his crypto empire in May 2022. His arrest initiated a downtrend in the prices of Terra-related tokens, including LUNC. Authorities suspect the collaboration of some Terra colleagues in promoting unstable investments to the public.

On the other hand, positive project fundamentals canvass Do Kwon’s negative impact on Terra Luna Classic and related cryptos. For example, Redacted, a trustless Zero Knowledge protocol, launched its Proof-of-innocence on the Terra network on March 22. Redacted seeks to enable users with secure transactions and financial privacy. Users can manage financial transactions smoothly without bothering about their identities being exposed.

What’s next for Redacted? 🌐

🔒 Privacy – A Public Good:✅ Fear of on-chain privacy & regulations? Not anymore! Introducing Proof of Innocence to face regulatory challenges head-on.

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— Redacted Money (@redacted_money) March 22, 2023

The Proof-of-innocence protocol also enables users to prove that received funds are not from sanctioned or blacklisted addresses. This will help differentiate the hackers and black market dealers from innocent token holders who want to transact. Additionally, the Proof of Innocence is open for verification to anyone, thus ensuring transparency and preventing regulatory sanctions.

Another positive fundamental is that the Alliance module by Terra is now functional on the Kujira Mainnet. Alliance 0.1.0 is a module that enables users to stake multiple assets on a blockchain. Alliance allows the assets on one chain to stake on the other, creating a favorable partnership through inter-chain staking. This signifies that assets can be minted on one chain, bridged, and staked on a different chain. Notably, staking on Alliance is straightforward, like in the case of native asset staking.

Such innovations are capable of supporting the Terra network for the coming years. Adoption and innovations are essential to the sustainability of a crypto project and, in turn, contribute to price growth.

Short-Term Terra Luna Classic Price Analysis

After turning away from the March 2 high at $0.000175, the LUNC price tanked 30.15% to set a swing to seek solace from the $0.0001188 support level. Many recovery attempts have been made, but they are continuously frustrated by the resistance line. As shown on the daily chart below, the price has been consolidating in a descending triangle.

This highly bearish chart pattern spelled doom for the token, projecting a 30% drop to $0.000083. The price has, however, been kept from realizing these losses by the triangle’s resistance line.

At the time of writing, the price had escaped from the triangle, indicating strength amongst buyers. A daily candlestick above the triangle’s resistance line at $0.0001215 would confirm a bullish breakout for the LUNC price. The first line of resistance would be the $0.00014 psychological level. Higher than that, LUNA Classic may rise first to the 50-day SMA at $0.00001428 and the 100-day SMA at $0.0001558.

Overcoming these barriers would see the token clear the price range defined by the triangle to tag the $0.00018 psychological level. Such a move would bring the total gains to 46.25% from the current price. Traders could expect LUNC’s upside to be capped here for the short term.

LUNC/USD Daily Chart

The Relative Strength Index (RSI), which had begun to move upwards, supported LUNA Classic’s positive outlook. In addition, the positive directional line of the Directional Movement Index (DMI) had begun tipping upwards. These two trend-following indicators showed buyers were re-entering the market. The ensuing demand pressure could propel LUNC higher.

On the other hand, the negative directional line of the DMI was moving above the positive directional line. This suggested that LUNA’s downtrend was not over. The value of the RSI at 40 suggested that there were still more bears than bulls in the market.

These sellers could attempt to pull the price back into the triangle. Additionally, a daily candlestick close below the triangle’s horizontal line at $0.0001188 would signal the continuation of the downtrend. This would open the door for the Terra LUNA Classic price to reach the technical target of the prevailing chart pattern at $0.000083.

Promising Alternatives To LUNC

Terra Luna’s Classic price is still on course to record higher highs. However, given the volatile nature of cryptocurrencies, there is no guarantee that they will reach the abovementioned levels. Therefore, investors could look into new tokens currently in presale with a low risk-to-reward ratio to add to their portfolio.

One such crypto is Love Hate Inu (LHINU) which has already raised $2 million after only two weeks.

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Take advantage of this early opportunity and buy Love Hate Inu tokens before the price increases in the next five days.

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