The terra luna classic price has fallen to $0.00016791, with its 4.5% drop today following the news that the SEC is charging Terraform Labs and CEO Do Kwon "with orchestrating a multi-billion dollar crypto asset securities fraud." LUNC remains up by 4.5% in the past week, but is down by 4% in the last 30 days, amid a turbulent time for the market as a whole.
Despite the bad news for Terraform Labs and (the still fugitive) Do Kwon, LUNC isn't directly affected by the SEC's charges, given that it's now community-driven. And with plans in motion to re-peg sister stablecoin USTC, it could have a brighter future ahead of it than the newer LUNA token, which was launched by Terraform Labs as part of the revamped Terra 2.0 network.
LUNC's indicators have responded negatively to yesterday's news, with the coin's relative strength index (purple) dropping from 70 a few days ago to just under 40 today. This indicates above-average selling pressure, while the fact that it hasn't fallen below 30 (yet) signals that the price has plenty of space left to fall before it becomes oversold.
Likewise, LUNC's 30-day moving average (red) has stalled after looking like it might be climbing back towards its 200-day average (blue). As such, it may continue to dip further before bottoming out.
The key short-term support level to watch is $0.000165, which could signal further falls if it fails. And with Terraform Labs, Do Kwon and Terra in general entering the news for all the wrong reasons now, the negative publicity could indeed cause LUNC to drop further.
While the SEC hasn't stated what kind of penalty or punishment it may be seeking from its case against Terraform Labs and Do Kwon, it has been pretty damning in its charges.
"As alleged in ourRead more on cryptonews.com