- Do Kwon’s legal victory in Montenegro has led to a significant 38% surge in LUNA’s value.
- The future of LUNA hinges on overcoming the $1.214 resistance level, with technical indicators suggesting a bullish outlook.
Terra (LUNA) has seen an unprecedented 38% jump in its value. This spike can be traced back to the latest developments in the legal saga surrounding Do Kwon, the embattled founder of Terraform Labs.
The spotlight turned to Kwon following the Appellate Court of Montenegro’s decision, which overturned a previous verdict, potentially halting his extradition to the United States.
Kwon’s legal victories come at a critical juncture. Having pleaded guilty to charges associated with the collapse of the Terra ecosystem, he found a glimmer of hope when the Montenegrin court decided to revoke the earlier extradition order.
Kwon’s ordeal began with his flight to Montenegro post-Terra’s mid-2022 collapse, leading to his arrest for possessing falsified documents, as previously reported by ETHNews.
This marked the start of a convoluted legal battle, now seeing a pivotal moment with the court’s order for a retrial, highlighting the procedural intricacies in the extradition requests by the U.S. and South Korea.
#DoKwon, #TerraformLabs co-founder, wins appeal against US extradition by Montenegro's Appellate Court 🎉 Previous ruling overturned due to procedural violations. pic.twitter.com/kQQiIDmjR1
— Crypto.Anu🌐🪬 (@CryptoAnu_) March 5, 2024
Market Response to Legal Developments
Parallel to the courtroom drama, Terra’s cryptocurrency, LUNA, exhibited volatile market behavior. Initially confined to a narrow trading band, the token witnessed a series of price movements – a testament to the unpredictable nature of cryptocurrency markets.
The bulls managed to break out of the resistance, propelling the price by approximately 25%, only to enter a period of consolidation.
However, the market dynamics took an unexpected turn as LUNA’s price soared by 91.11% in a matter of hours, before undergoing a 32.8% correction. This rollercoaster ride brought the price to a more stable range, between $1.0405 and $1.2140, signaling a cooling-off period in the token’s otherwise tumultuous price action.
LUNA Technical Analysis and Future Outlook
From a technical standpoint, the Moving Average Convergence Divergence (MACD) indicators paint an optimistic picture for LUNA, with a consistent green histogram signifying a bullish trend. This suggests a predominance of buying over selling pressure in the market, fueling speculation about LUNA’s future price trajectory.
Should the market momentum push LUNA above the critical resistance level of $1.214, we might witness a renewed bullish rally aiming for the $1.55 mark. Conversely, a bearish downturn could see the token testing new lows, subject to market forces.
Meanwhile, Terra Classic’s token, LUNC, has seen its price increase by 10.46% in the last 24 hours to $0.0002087, representing a gain of 57.20% in the last 7 days.