After a long period of stagnation, Terra (LUNA) saw renewed investor interest as of May 30, 2024. This increase follows a settlement agreement related to the fraud case between Terraform Labs, Do Kwon, and the U.S. Securities and Exchange Commission (SEC). Data from the crypto and price platform CoinMarketCap shows that LUNA‘s price was at $0.67 at the time of writing, trading with an 11.5% increase in 24 hours and an 11.6% increase over the past 7 days.
Potential Golden Cross Formation Closely Monitored
For the previous 46 days, LUNA’s price was in consolidation, but it broke out of this range with a significant 43% move. On April 5, 2024, LUNA experienced a death cross, leading to a continuous downtrend. For those unfamiliar, a death cross is a bearish indicator that occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA.
Recent developments suggest a potential bullish trend as the 50-day SMA is on the verge of crossing above the 200-day SMA, forming a golden cross. This golden cross formation is a bullish signal indicating a possible upward trend.
Following the initial price rally, LUNA’s price retraced to the top of its previous range in a ‘break and retest’ formation. Analysts expect LUNA to continue its upward trajectory with potential resistance levels at $0.7, $0.75, and $0.83. Conversely, if LUNA re-enters its previous range, it may continue to move sideways with key support levels at $0.62, $0.54, and $0.5.
Analysts Predict a Rise to $2 Soon
A potential price rally could be linked to the resolution of the SEC’s fraud case against Terraform Labs and Kwon. This settlement, perceived positively by the Terra community, canceled all planned court cases, leading to a price increase for LUNA. Some crypto analysts, like Eric Cryptoman, even predict that LUNA could soon reach a price of $2.
Despite the positive market response, Kwon’s legal troubles are not fully resolved. He is currently out on bail in Montenegro and awaits extradition to the U.S. or South Korea to face additional criminal charges. The SEC proposed a $5.3 billion fine, the largest ever for an altcoin project, but Kwon countered with a $1 million fine proposal.
