LUNA Price Analysis: Why Is Terra Pumping?
LUNA price analysis: After an extended period of stagnation, LUNA had some renewed interest from investors on May 30, 2024. This pump comes shortly after Terraform Labs and Do Kwon agreed to settle the fraud case with the United States Securities and Exchange Commission (SEC). Terra price hovered at $0.67 during European business hours on Friday, an 11.5% increase in 24 hours and another 11.6% increase in 7 days, CoinGecko data shows.
LUNA Price Analysis: Impending Golden Cross Prompts $1 Amid Settlement with SEC
LUNA price had been in consolidation for the past 46 days before it finally exploded out of the range in a 43% move. The token worth $508 million in market cap sported a death cross on April 5, 2024, which led to a sustained downward trend for the asset.
The charts, however, show a different story with the latest Terra developments. The 50-day simple moving average (SMA) is on the verge of crossing above the 200-day SMA. This would form a golden cross, a bullish signal.
After the initial pump, LUNA receded to the top of the range in a classic textbook ‘breakout and retest’ pattern. LUNA price is expected to begin its ascent back up and may encounter key resistance points around $0.7, $0.75, and $0.83.
In an inverse scenario, LUNA may enter back into the range and continue sideways movement. Key support levels would be $0.62, $0.54, and $0.5.
Why is LUNA Price Pumping?
Following the SEC’s fraud accusation against Terraform Labs and Do Kwon, the accused have agreed to settle the case, canceling all scheduled court cases. The Terra community perceived this to be good news as LUNA took off in an aggressive price surge.
This has led to some crypto analysts, such as Eric Cryptoman, calling for a $2 LUNA price soon.
Most will think this is a joke but don’t be surprised to see $LUNA trading above 2 dollars soon.
Most will call it risky, and I love that word. Study asymmetric risks. pic.twitter.com/xUoh6rZ5lH
— Eric Cryptoman (@EricCryptoman) March 1, 2024
Do Kwon’s woes are still far from over, as he is also out on bail in Montenegro. He is awaiting extradition to either the U.S. or South Korea to face more criminal charges. The SEC proposed to fine him $5.3 billion, which would be the largest fine any crypto project has incurred. He countered the proposal, citing that a $1 million fine would be more appropriate.
Bottom Line
As the Terraform Labs and Do Kwon case resolves, investors are watching LUNA price closely. A settlement that favors the accused could be a bullish sign for Terra.
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