LUNC Price Pattern Signals Potential 14% Rally Despite Legal Developments

Terra Luna Classic (LUNC) has remained in a tight trading range despite the legal developments involving Terraform Labs co-founder Do Kwon, who pleaded guilty to fraud charges in a U.S. court. The token is currently trading at $0.000062, having fallen nearly 5% from its monthly high, yet it has formed a potential bullish reversal pattern on the four-hour chart [1]. The inverse head-and-shoulders pattern suggests a possible price recovery if key resistance levels are broken.

On the four-hour chart, LUNC reached a peak of $0.00007235 in July before retracing. The pattern’s head is located at this month’s low of $0.00005518, with the shoulders around $0.000059. The critical neckline is at $0.00006440, a level the price has previously failed to surpass on July 28 and August 10. A successful break above this level could confirm the bullish pattern and indicate a potential move toward the July high of $0.00007235 [1]. The measured move from the neckline to the head, approximately 14%, suggests a target price of $0.00007350. However, a drop below $0.00005960 would invalidate the bullish outlook.

Do Kwon’s guilty plea marks a major legal milestone but is unlikely to directly impact LUNC’s price. Kwon has had no involvement in the project since the Terra ecosystem’s collapse, and LUNC is now governed by the community. He faces up to 12 years in U.S. prison and additional charges in South Korea, but these developments do not affect the ongoing operations of LUNC [1]. The token has instead remained underpinned by its deflationary mechanics, as token burns continue to reduce the circulating supply. Over the past seven days, more than 836 million tokens were burned, bringing the total to 415 billion. This sustained reduction supports LUNC’s long-term fundamentals by increasing scarcity [1].

Although Kwon’s guilty plea has not triggered immediate volatility, it highlights the broader legal challenges facing the Terra ecosystem. LUNC, however, remains in a position where a significant upward move is still possible, given its technical pattern and ongoing supply adjustments. The community-driven nature of LUNC, combined with these factors, suggests continued potential for growth despite the recent legal developments [1].

Source: [1] LUNC price pattern signals rally despite Do Kwon guilty plea (https://crypto.news/lunc-price-pattern-signals-rally-despite-do-kwon-guilty-plea/)