New York, USA - 1 May 2021: Terra LUNE cryptocurrency logo close-up on website page, Illustrative Editorial
Terra luna’s price continues to demonstrate weakness in the markets, which saw it briefly drop out of the top 100 cryptocurrencies by market capitalization earlier this week. Although it has since returned to the top 100 and currently ranks as the 99th largest cryptocurrency, the current bearish trend continues to flash red flags of an impending strong and aggressive bearish push that might condemn it out of the top 100 largest cryptocurrencies forever.
The current bearish trend comes amidst the platform’s founder’s legal trouble with the South Korean government. According to the latest reports, Do Kwon, the CEO of Singapore-based Terraform Labs, is believed to be in hiding after an arrest warrant request was submitted to Interpol by the South Korean government. This follows investigations into the collapse of the now Terra Luna Classic and UST, which combined resulted in investors losing more than $40 billion.
Controversy about Do Kwon’s whereabouts continues to dominate news headlines, possibly contributing to negative consumer sentiments towards the Terra Luna project. Although the founder has come out to clarify that he is not in hiding, the reputational damage done to the platform may have a long-lasting impact on the Terra Luna price recovery.
In today’s trading session, Terra Luna is down by less than a percentage point and currently trading at $2.5. The drop is a continuation of choppy markets, which has seen Terra Luna’s price failing to establish a major trend for more than two weeks.
Looking at the chart below, it is highly likely that the current horizontal market is likely to continue. Therefore, I expect the prices to continue reversing gains and losses made in the previous sessions for the next few trading sessions. There is also a high likelihood that the $2.7 resistance level will continue acting as a pivot point that is hard to break out of, and hence, I expect prices to continue trading below it.
My sideways analysis will only be invalidated should the prices move past the resistance level and trade above the $3 price level. At that point, it will be clear that a new bullish trend has started.
This post was last modified on Oct 05, 2022, 13:47 BST 13:47