Terra (LUNA) has attracted renewed investor attention as of May 30, 2024, following a settlement involving Terraform Labs, Do Kwon, and the U.S. Securities and Exchange Commission (SEC). CoinMarketCap data reveals that LUNA traded at $0.67, experiencing an 11.5% rise in the past 24 hours and an 11.6% increase over the last week.
What is the Potential Golden Cross Formation?
For 46 days, LUNA’s price had been in consolidation until a breakout occurred, resulting in a 43% increase. Earlier, on April 5, 2024, LUNA saw a death cross, signaling a bearish trend as the 50-day simple moving average (SMA) fell below the 200-day SMA.
The latest developments point to a potential bullish trend with the 50-day SMA nearing a cross above the 200-day SMA, potentially forming a golden cross. This golden cross is viewed as a bullish indicator, suggesting a possible upward trend.
Could LUNA Reach $2 Soon?
After the initial rally, LUNA’s price retraced to the previous range’s top in a ‘break and retest’ formation. Analysts forecast further growth with resistance levels at $0.7, $0.75, and $0.83. If LUNA falls back into its former range, it may stabilize with support levels at $0.62, $0.54, and $0.5.
The settlement of the SEC’s fraud case against Terraform Labs and Do Kwon has been perceived positively, leading to the price rise. Analyst Eric Cryptoman predicts that LUNA could hit $2 soon. However, Kwon’s legal woes are not entirely over; he is currently out on bail in Montenegro and faces extradition to the U.S. or South Korea for further charges.
Actionable Insights for Investors
Investors seeking to capitalize on LUNA’s potential rally should consider:
- Monitoring the formation of the golden cross for entry signals.
- Identifying key resistance levels at $0.7, $0.75, and $0.83 for profit-taking targets.
- Watching support levels at $0.62, $0.54, and $0.5 to manage risk effectively.
- Staying updated on Do Kwon’s legal proceedings as they could impact market sentiment.
In summary, Terra (LUNA) has witnessed a resurgence in investor interest following a significant legal settlement. The potential formation of a golden cross points to a bullish trend, with analysts projecting further price increases despite ongoing legal complexities surrounding Terraform Labs’ CEO, Do Kwon.