fxstreet.com
- Terra Luna Classic price has dropped 32% after a rejection from a stiff seller congestion zone.
- LUNC could extend fall 30% this week amid a bearish market and the ecosystem’s legal tussle.
- The hearing between Terraform Labs and the SEC will take place on March 25.
Terra Luna Classic (LUNC) price is trading with a bearish bias, extending the fall as part of a broader market crash, led by Bitcoin. For LUNC price, however, volatility is expected amid two fundamental events expected early next week.
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LUNC volatility to increase with two events in sight
The Luna ecosystem has two crucial events scheduled for March 25, with the headlining one being the hearing between Terraform Labs and the US Securities and Exchange Commission (SEC).
Do Kwon, who is the subject of the hearing, will not be present in court as he is still in Montenegro and will be represented by his lawyer, among them, Goran Rodic. According to Rodic, Kwon would be extradited to South Korea after March 23 as ruled by a Montenegro court. It comes after the US authorities objected to the cancellation of Do Kwon's extradition to the US. The outcome of this objection will be awaited.
The authorities have been on Kwon’s neck since Terra collapsed in mid-2022, when Terra's collapse wiped out billions of dollars of investor funds. Kwon had fled to Montenegro, but was later arrested for possession of falsified documents.
Besides Kwon-related news, the Terra Classic chain upgrade will take place on the same day. It follows a unanimous approval of the v2.4.2 upgrade proposal, intended to introduce IBC-Hooks to facilitate the onboarding of decentralized applications (dApps) onto the Terra Luna Classic network.
With support coming from both validators and community members, March 25 will be critical for LUNC, LUNA, and USTC. The hype around the event has drawn the likes of Singapore-based crypto futures trading platform WEEX, which announced the listing of LUNC spot and futures pairs.
LUNC price outlook with counteracting events on March 25
LUNC price has dropped 32% after a rejection from a stiff resistance, with technical indicators suggesting an extended fall. Notice the position of the Relative Strength Index (RSI) below the 50 midline, signifying weak price strength. The Awesome Oscillator (AO) has also flipped negative, pointing to a bearish takeover.
Increased selling pressure could see the Terra Classic price extend a leg lower to $0.00009170. Such a move would constitute a 30% drop below current levels.
LUNC/USDT 1-day chart
On the other hand, a re-entry by the bulls could see the LUNC price recover. A decisive candlestick close above the supplier congestion level would signal a potential rally, inspiring late bulls to flock to the scene. This could propel the LUNC price further north, likely going as high as the $0.00025000 threshold.