Terra(LUNA) & TerraClassic have been on a run of late as Do-Kwon, the founder, is reportedly being detained by Interpol. While the negative rounds of news are having such a large impact, the question arises whether the current upswing will prevail or just remain as a short-term bounce.
Do-Kwon, a co-founder, was continuously watched after the historically significant TerraClassic crash in May. He was held accountable by the government for the harm done to the nation’s citizens. A recent update revealed that nearly 195 countries were looking for the founder, who is currently being held by the authorities.
The native tokens Terra (LUNA) and TerraClassic (LUNC) soared in the midst of this and currently top the gainers’ list for the day. But how long will the rally exist?
TerraClassic (LUNC)
Prior to the price of TerraClassic igniting a powerful rally in the final days of August, the price had plateaued. The asset kept rising, reaching its highest point for the month at about $0.00059. But soon after, the trend changed, driving the price sharply below $0.0002. The LUNC price now appears to have defeated the bearish thesis following the enormous rise during the most recent trading day. However, there is still a great deal more to come.
The 66% increase seen in a 4-hour candle indicates a bullish resurgence, but the moving averages show a counter-rally. The 50-day MA level is moving south while the 200-day MA level is crossing over it. The 50-day levels surged high previously when they crossed, but now that they have descended, the rally is also anticipated to end soon.
Terra(LUNA)
On the other hand, despite a sudden increase of almost 30% during the early trading hours, the Terra (LUNA) price is emitting strong bearish signals. Although there was a noticeable price increase, the current consolidation is pointing to a significant downtrend in the coming days.
For the past few hours, the bulls have been facing huge hindrances from the bears, and hence a notable price drain may be highly anticipated. Further, on reaching the lower support below $2, the LUNA price may receive the required base to rebound well.
Was this writing helpful?
Source: https://coinpedia.org/price-analysis/what-is-the-dependability-of-the-terra-luna-and-terraclassic-lunc-surges-will-the-bulls-be-trapped-again/