LUNC price dives after Do Kwon sentence: here’s why it may dive by 45%

The LUNC price has dived by over 45% from its highest point this week, a move that has erased millions of dollars in market value.

Terra Luna Classic (LUNC) token dropped to a low of $0.00004587, its lowest level since Dec. 5. It remains ~85% above its lowest level this month, making it one of the best-performing tokens in the crypto market this week.

LUNC’s crash has coincided with the ongoing drop in other similar tokens like Terra (LUNA) and USTC, which have erased millions of dollars in value.

Terra Luna Classic token has dropped after a judge sentenced Do Kwon to 15 years in prison, longer than the five years that his defense had requested. 

It was also longer than the 12 years that government prosecutors had recommended, citing the losses suffered by its holders, who lost over $40 billion.

At its peak, Terra operated two tokens, all of which collapsed in 2022, a move that accelerated the crypto crash that happened during the year. It was also a key cause of the FTX collapse during that year.

After the collapse, the community members took over LUNC and USTC, as Do Kwon and his team launched Terra 2.0, which he hoped would help stage a comeback, a move that has stalled since his legal issues emerged.

LUNC still has a vibrant community that constantly votes on proposals, with the ultimate goal being its recovery. It is also widely supported by Binance, the biggest crypto exchange in the world, which burns millions of Terra Classic tokens a month.

LUNC price technical analysis 

The daily timeframe chart shows that the LUNC price jumped from this month’s low of $0.00002488 on Dec. 1 to a high of $0.00008055 on 6th. The rally happened ahead of Do Kwon’s sentencing.

LUNC token has now plunged as investors sell the news now that the sentence has happened. It has moved below the important support level at $0.000047, which was the neckline of the double-top pattern.

Therefore, the most likely LUNC price forecast is bearish, with the next key support level being at $0.00002488, its lowest level this month, which is ~45% below the current level. A move above below that level will point to more downside in the near term.