coinedition.com
Terra Classic price today trades near $0.00004576, up 20.45% in the past 24 hours as the token surges following news that Terraform Labs’ administrator has sued trading firm Jane Street. The lawsuit alleges Jane Street used non-public information from Terraform insiders to profit ahead of the TerraUSD collapse in May 2022.
Terraform Labs Sues Jane Street Over Alleged Insider Trading
The administrator overseeing the wind-down of Terraform Labs has filed a lawsuit against Jane Street, alleging the trading firm used non-public information to profit before the May 2022 Terra ecosystem collapse. The complaint claims Jane Street gained access to confidential data through back channels, allowing the firm to strategically withdraw significant amounts of UST from liquidity pools just minutes after Terraform executed internal moves.
The lawsuit alleges these trades contributed to the broader collapse of the stablecoin and accelerated losses for Terraform’s creditors. Jane Street has denied the allegations, calling the claims baseless and emphasizing that the market turmoil was driven by internal mismanagement within Terraform rather than external trading activity.
The legal action adds a new layer of uncertainty for $LUNC holders. The original Terra blockchain was rebranded as Terra Classic after the collapse, while a new Terra 2.0 network was launched. $LUNC now has a circulating supply of approximately 5.47 trillion coins and had been down roughly 46% over the past year before this week’s rally.
Price Breaks Above 0.236 Fibonacci As RSI Approaches Overbought
On the daily chart, Terra Classic has broken above the 0.236 Fibonacci retracement level at $0.00004199 and is now testing the 0.382 level at $0.00004947. All major EMAs remain overhead: 20-day at $0.00003676, 50-day at $0.00003739, 100-day at $0.00003934, and 200-day at $0.00004455.
The chart shows:
- Clean breakout above 0.236 Fibonacci at $0.00004199
- RSI spiking to 72.94, approaching overbought territory
- 0.382 Fibonacci at $0.00004947 as immediate resistance
- Descending trendline from November still overhead
Terra Classic dropped from above $0.00008098 in November to $0.00002995 in December, marking a 63% correction. The current rally to $0.00004576 represents a 53% surge from those lows, driven entirely by the Jane Street lawsuit catalyst.
A daily close above $0.00004947 would reclaim the 0.382 Fibonacci level and place $0.00005546 (0.5 Fibonacci) in range. However, the RSI reading above 72 suggests the rally is becoming overextended in the short term, raising the risk of a pullback.
2-Hour Chart Shows Parabolic Move With Supertrend Flip
The 2-hour chart reveals Terra Classic in a parabolic uptrend after breaking above the Supertrend at $0.00004014. Parabolic SAR sits at $0.00003718, providing support below. The move shows $LUNC spiking from $0.00003500 to above $0.00005000 in a near-vertical rally.
The structure shows:
- Supertrend flipped bullish at $0.00004014
- Parabolic vertical rally from $0.00003500
- SAR support at $0.00003718
- Extreme momentum suggesting pullback likely
When price moves this far this fast, it typically indicates emotional buying rather than sustainable accumulation. The Jane Street lawsuit provided the catalyst, but the magnitude of the move suggests FOMO is driving participation rather than fundamental revaluation.
A pullback to retest the Supertrend at $0.00004014 would be healthy and provide confirmation that the breakout is sustainable. Without consolidation, the risk of a sharp reversal increases as early buyers take profits.
Outlook: Will Terra Classic Go Up?
The next move depends on whether $LUNC can hold $0.00004014 and break above $0.00004947.
- Bullish case: A close above $0.00004947 with consolidation would place $0.00005546 in range as the Jane Street lawsuit keeps $LUNC in the spotlight. Reclaiming $0.00006148 (0.618 Fibonacci) confirms sustained recovery.
- Bearish case: Rejection at $0.00004947 and a breakdown below $0.00004014 exposes $0.00003718, with further downside toward $0.00003676 if the lawsuit rally proves temporary. Losing $0.00004014 flips Supertrend bearish.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.