Last Friday’s crypto market dip on Silvergate Bank concerns weighed heavily on #Luna Classic (LUNC), the cryptocurrency that powers the original but not largely defunct Terra blockchain ecosystem.
After dipping more than 10% on Friday from near $0.00017 to around $0.00015, the cryptocurrency has since eased a little lower to stabilize in the mid-$0.00014s.
What had been a key support area around $0.0001550 should now be viewed as an area of near-term resistance. Meanwhile, traders are also monitoring support just under $0.00014 in the form of a late 2022 low.
As the broader #cryptocurrency market stabilizes ahead of a busy week of macro events, including a barrage of key US jobs data and a testimony from Fed Chair Jerome Powell before the US Congress, LUNC bulls will be hoping the cryptocurrency can continue to find support above this level, as was the case last Friday.
If this support area were to fail, a retest of the late 2022 lows in the $0.000127 area would become a distinct possibility. That would take LUNC’s drop since the 2023 highs around $0.00021 to a massive 40%.
Singapore Opens Investigation into Terraform Labs
Reports in the crypto media on Monday suggest that authorities in Singapore have opened an investigation into #Terraform Labs, the company behind the development of the #Terra blockchain.
Singapore is where Terraform Labs was previously incorporated and where, for a long time, the blockchain’s creator, Do Kwon, had been residing.
Do Kwon, who is South Korean, is wanted by South Korean police and is currently thought to be in hiding in Serbia. Do Kwon is wanted over his role in the spectacular collapse of the Terra blockchain ecosystem last May – where algorithmic stablecoin UST lost its peg to the US dollar, triggering a hyperinflationary spiral in LUNC and causing a $40 billion wipeout in the Decentralized Finance (DeFi) ecosystem, the reverberations of which are still being felt today.
The US Securities and Exchange Commission has accused Do Kwon and Terraform Labs of fraud and alleges that Kwon has laundered over $100 million in Bitcoin that he stole from the Luna Foundation Guard.
