LUNA prepares for a 20% move as lawsuits against Do Kwon and associates Pile


  • LUNA will likely drop to $1.75 to seek fresh liquidity before jumping 20% to $2.20.
  • Bragar Eagel & Squire PC files a class action lawsuit against Do Kwon and his affiliates for violating the Exchange Act.
  • Due to near oversold conditions, LUNA might bounce back past the descending trendline in the four-hour timeframe.

LUNA price regained momentum toward the end of last week and exchanged hands at $2.20, bolstered by increased liquidity, according to FXStreet’s analyst, Akash Girimath. However, the embattled token failed to stretch the bullish leg further, leading to an immediate correction.

At the time of writing, LUNA price teeters at $1.77 after closing the day under $1.80. Another dip is expected to take precedence during the American session on Monday, but a reflex rebound may follow in preparation for another upswing to $2.20.

Legal pressure is mounting on Do Kwon and TerraForm Labs

A series of class action lawsuits have been filed against Do Kwon, the founder of TerraForm Labs, with the latest coming from Bragar Eagel & Squire PC. According to the filing, Kwon, Nicholas Platias, the firm’s head of research and other affiliated companies, violated the Exchange Act, the Racketeer Influenced and Corrupt Organizations Act (RICO) as well as the Securities Act.

A total of three class action lawsuits have been filed against TerraForm Labs, Do Kwon and Nicholas Platias in the United States. Some of the affiliates mentioned in the case by Bragar Eagel & Squire PC include Jump Trading, Republic Capital, DFinance Capital, Three Arrows Capital (3AC), Jump Crypto and Tribe Capital.

This class action lawsuit represents several groups of people, including all investors, companies and individuals who bought LUNA tokens in the period running from May 20, 2021, and May 25, 2022. The scope covers tokens like TerraUSD (UST), KRT, WHALE, Terra (LUNA), and aUST, among others.

LUNA price seeks refuge ahead of an impending jump to $2.20

The Stochastic RSI has dropped below 30, implying that sellers have the upper hand. However, this could also mean their influence might gradually weaken in the coming sessions or a few days. Robust support is expected to come into play in the region between $1.65 and $1.75, shown in green.

Traders should look for an incoming bullish divergence with the RSI rising above the moving average. Another critical signal would emanate as the index moves into the neutral zone toward the mean line as it indicates growing buying pressure.

LUNA price

LUNA/USD Four-hour chart

LUNA price may run into resistance at the descending trend line on the other side of the fence. Note that prices have been kept below this line for nearly a month. If it remains unbroken, investors should brace for more losses with $1.65 and $1.45 in the picture. On the positive side of things, piercing the line could propel LUNA price to higher levels at $2.40 and $2.60, respectively.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP