For more than two months now, Terra Luna’s price has continued to trend in a sideways market. Today, the price is up by 2 percent. The crypto is also likely to continue going up throughout the session; hence, we might see prices wiping losses made in the previous two trading sessions.
Part of the reason we have seen Terra Luna continue to struggle in the markets is due to its current legal problems. Late last month, South Korea raided the platform’s offices, hoping to find evidence to help them prosecute the company behind the Terra Luna crypto.
The investigation focuses on the collapse of Terra Luna Classic, which lost over 99 percent of its value in mid-May. The crypto, which was algorithmically linked with another Terraform Labs project, UST stablecoin, resulted in the loss of tens of billions of dollars and more than 200,000 South Koreans losing their money.
The looming investigations and its finding is likely to have a huge impact on the future of Terra Luna. Therefore, despite investors continuing to invest in the project, there is still fear that, should the company be found to have acted illegally, Terra Luna’s price will likely plummet.
In today’s trading session, Terra Luna is up by 2.5 percent. Despite the investigations and bad press, the current push to the upside will likely continue going up throughout the session. In the next few trading sessions, there is also a high likelihood that we may see Terra Luna continue to go up and possibly hit the $2.7 resistance level.
Part of the reason I expect the coin to grow is the recent spike in trading volume. For instance, in the past 24 hours, the trading volume has gone up by 24 percent, totaling more than $50 million. Moreover, the surge is likely to continue for the next few sessions, which will mean continued growth.
However, should the price trade below yesterday’s price low of $2.02, then my bullish analysis will be invalidated. It will also mean the sideways market will continue.
This post was last modified on Aug 08, 2022, 13:15 BST 13:15