Token Terra Luna Classic (LUNC) has fallen more than 45% from this week’s high.
The price of the LUNC token plummeted after a judge sentenced Terraform Labs founder Do Kwon to 15 years in prison, significantly exceeding the sentence his defense had sought. It even exceeded the 12 years requested by US federal prosecutors.
At its peak, Terra issued two tokens, both of which crashed in 2022, precipitating the cryptocurrency crash of that year. This was also a major factor in the collapse of FTX that same year.
After the collapse, Do Kwon and his team launched Terra 2.0, which he hoped would help him get back into the game. However, the process stalled due to legal issues he encountered.
LUNC still has an active community that regularly votes on proposals aimed at restoring the project. It also enjoys active support. Binance, the world’s largest cryptocurrency exchange, which burns millions of Terra Classic tokens monthly.
Despite this, investors began selling LUNC aggressively immediately after the verdict. The price fell below the important support level of $0,000047, which was the boundary of the double top pattern.
Therefore, the most likely outlook for the asset is bearish, with the next key support level being $0,00002488, this month’s low, which is approximately 45% below the current level. A move above or below this level would indicate further downside in the near term.