The recent jury verdict in the U.S. SEC vs. Terraform Labs case has cast a shadow over the future of Terra Luna Classic (LUNC). Though the jury sided with the SEC, finding Terraform Labs and Do Kwon liable for fraud, some analysts remain optimistic about LUNC’s price potential.
LUNC Price After the Lawsuit
Following the verdict, LUNC price dipped over 2%, raising concerns among traders. However, analyst Javon Marks believes the coin still has room for growth. He points to a bullish pennant pattern forming on LUNC’s long-term chart, suggesting a potential breakout and price surge.
Analyst Marks predicts a best-case scenario of LUNC reaching $0.00058 during a bull run, representing a gain of over 270% from its current price (as of April 7, 2024). He anticipates a mid-April breakout coinciding with the Bitcoin halving event, potentially pushing LUNC towards the $0.0005 mark.
Technical Analysis Paints a Bullish Picture
Marks highlights several technical factors supporting his bullish outlook. LUNC currently sits above its key support level of $0.000125. Additionally, the recent high of $0.000255 in early March suggests potential for a retest in a bull market. Overcoming the $0.0002 psychological resistance would be a significant step for LUNC.
Another positive indicator is the rising open interest (OI) in LUNC and 1000LUNC futures contracts. This suggests increased trading activity and potential for a price recovery. A 2% rise in OI over the past few hours indicates growing confidence among futures and spot traders, which could fuel further upward momentum.
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Uncertainties Remain
While the technical analysis suggests a potential rally, the legal situation surrounding Terraform Labs and Do Kwon adds an element of uncertainty. The company’s stated intent to explore options and challenge the verdict could introduce further volatility into the market.
The LUNC price outlook remains a mixed bag. While the SEC lawsuit verdict may dampen sentiment in the short term, technical indicators and rising futures OI paint a potentially bullish picture. Ultimately, the success of any LUNC price rally will depend on broader market conditions, investor confidence, and the resolution of the legal case against Terraform Labs.
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