Terra Luna Classic price went parabolic on Monday as demand for the coin jumped. LUNC rose to a high of $0.00033, which was the highest level since September 17. It has risen by more than 80% from its lowest level this week, giving it a market cap of more than $2 billion.
Is this a pump and dump scheme?
Terra Luna Classic price jumped sharply on Monday. Other affiliated cryptocurrencies like Terra Luna 2.0, USTC, Anchor Protocol, and Mirror Protocol also bounced back. There was no major news that helped these cryptocurrencies rally.
Instead, the only major news was that Interpol was now seeking the arrest of Do Kwon, the founder of Terra. South Korea investigators have said that Kwon has gone into hiding while Singapore authorities said that he was no longer in the country. Kwon has maintained that he is not in hiding.
Therefore, in a statement, Interpol said that its officers will work to arrest and deport him back to South Korea. This marks a major downfall of an entrepreneur who created a coin that was once valued at more than $50 billion.
Still, Do Kwon has some defenders who argue against his prosecution. They argue that doing so will discourage people from building products. Also, they note that buyers of Terra’s products knew the risks of doing so. Still, even his defenders argue that going into hiding was not a good choice.
Therefore, the current rebound of Terra Luna Classic price is mostly because of a pump and dump scheme. This happens when traders pump an asset and then dump it in a while.
Terra Luna Classic price prediction
The chart below shows that LUNC price formed a major bullish reversal on Monday. As it rose, the coin moved above the 25-day and 50-day moving averages. It has also formed a bullish flag pattern that is usually a bullish sign. The MACD has also continued rising.
Therefore, because of the small bullish flag pattern, there is a likelihood that it will continue rising as bulls target the key resistance point at $0.0050. A drop below the support at $0.00025 will invalidate the bullish view.