While the volatility in the cryptocurrency markets continues unabated, the latest developments on the Terra Luna Classic (LUNC) front have become the focus of investors. While there was a sharp decline in the LUNC price after the prison sentence given to Do Kwon, discussions about the project ecosystem were also reignited. Despite this, the token remains one of the notable assets in the market, still performing strongly compared to its monthly low.
Why Did the Do Kwon Decision Put Pressure on LUNC?
With the last drop, Terra Luna Classic dropped to $0.00004587, seeing its lowest value since December 5. Despite this pullback, LUNC was among the relatively best-performing tokens of the week, trading nearly 85 percent above its monthly low. However, the decline was not limited to the LUNC alone; Similar tokens such as Terra and USTC also lost millions of dollars in value.
One of the most important reasons behind this sharp price movement was the 15-year prison sentence of Do Kwon, the founder of Terra. This sentence exceeded the five years requested by the defense and the 12 years recommended by prosecutors. The court cited the collapse of the Terra ecosystem, resulting in losses exceeding $40 billion for investors, as one of the main reasons for the decision. The collapse of the Terra ecosystem in 2022 created a massive chain reaction that affected not only LUNC and UST, but the entire crypto market. In fact, it is frequently stated that this process was one of the factors that accelerated the FTX crisis that occurred in the same year.
Technical Outlook and Community Dynamics
On the technical analysis side, daily charts reveal that LUNC experienced a rapid rise from the bottom of $ 0.00002488 on December 1 to $ 0.00008055 on December 6. It is stated that this rise occurred with anticipatory purchases before Do Kwon’s sentence was announced. Following the decision, it is seen that investors reduced their positions with the “sell the news” reflex and the price fell below $0.000047, which is an important support level. This level also stands out as the neckline of the double top formation.
Analysts state that the current outlook indicates that pressure may continue in the short term. The next strong support point is the monthly low of $0.00002488. However, the fact that LUNC still has an active community, regular governance votes, and Binance’s support for the project with monthly token burns shows that long-term hopes are not completely lost. On the other hand, as a different development in the sector, Ethereum 
$3,119.79 The increasing demand for staking in the network and the tendency towards Layer-2 projects also reveal that investor interest is gradually shifting to alternative ecosystems.
