- LUNC price outperformed Bitcoin and top altcoins this week, posting over 212% gains.
- The token surged to $0.000078 heading into the weekend, with 24-hour trading volume exceeding $841 million on Saturday.
Crypto market sentiment continued moving from “Fear” to “Extreme Fear” around Saturday afternoon (UTC). The trend was primarily driven by Bitcoin (BTC) dropping back to $88K after bouncing to nearly $94K during the week.
Top altcoins, given their high correlation with BTC, generally followed with significant corrections in their values. Despite that, Terra Classic (LUNC) rallied ahead of two key events linked to its ecosystem.
LUNC Price Performance
LUNC surged between a $0.000025 low and a $0.000078 high all the way to Saturday, reflecting around 212% gains. The token recorded a 95% increase on Saturday alone from $0.00004, as it picked up over 442% in 24-hour trading volume to more than $841 million.
It should be noted, however, that LUNC has lost most of its value from its all-time high of $117 four years ago, when it underwent a price squeeze due to an algorithmic supply scarcity shock. In May 2022, the asset collapsed due to the depegging of the TerraUSD (UST) stablecoin.
What’s Fueling the Terra Classic Rally?
There’s no strong fundamental argument supporting LUNC’s recent rally besides its continued token burns. In the last seven days, it has burned 849 million tokens, bringing its cumulative burns to over 426 billion.
Binance reportedly accounted for the highest supply burn with over 75 million tokens. Additionally, it has pledged to burn all fees it derived from LUNC trading.
From a technical standpoint, LUNC has been trending above its 50-day moving average (MA), signalling a bullish trajectory. But then again, its Relative Strength Index (RSI) is over 88, warning of an overbought condition and a potential downside soon.
Another factor fueling LUNC is its rising mentions in mainstream and social media as Terraform Labs co-founder Do Kwon nears sentencing.
Do Kwon Faces 12-Year Sentence in the US
Kwon faces a potential 12-year sentence on December 11 in Manhattan federal court, as US prosecutors opposed his motion for a reduced jail term.
Terra’s colossal collapse resulted in $40 billion in losses, based on a press release from the Office of Public Affairs at the US Federal Bureau of Investigation (FBI) in January. Their investigation found that he engaged in multiple schemes to deceive investors and artificially inflate the value of Terraform’s cryptocurrencies.
As a result of the fiasco, authorities charged Kwon with crimes, including extensive fraud, money laundering, and attempts to conceal his illegal activities. He eventually pleaded guilty to one count of conspiring to commit commodities, securities, and wire fraud. He also agreed to the forfeiture of assets valued at over $19 million.
Kwon’s legal team sought a reduction of his US sentence to a maximum of five years, crediting his prison term in Montenegro and potential prosecution in South Korea for the same crimes. Unfortunately, US officials rejected his motion due to the scale of his fraudulent activities and to deter others from emulating his acts.
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