Terra Classic (LUNC) rose by 35% in the past 24 hours to USD 0.00004852, and LUNA went up over 10%, defying a flat wider market as traders jumped into the embattled tokens. The monumental increase in LUNC and the 466% in trading volume to over USD 74 million (at the time of writing) coincided with the filing of a bombshell lawsuit against the very well-known, quantitative trading company Jane Street by Terraform Labs’ bankruptcy administrator.
Why Terra Classic (LUNC) & Terra (LUNA) are Suddenly Rallying
The recent trading frenzy surrounding Terra Classic (LUNC) and Terra (LUNA) centers around a lawsuit filed against Jane Street in Manhattan on February 23, claiming that the firm used confidential information to engage in “front-running” of the collapse of Terraform in 2022. The lawsuit alleges that, upon access to a private Telegram group called “Bryce’s Secrets,” which was named after a former Terra intern, Todd Snyder, who works at Jane Street, Jane Street became aware of the fact that Terraform Labs was going to withdraw USD 150 million of UST liquidity. Shortly thereafter, Jane Street allegedly dumped 85 million UST, thereby accelerating the depeg that wiped out USD 40 billion.
Of course, the trading firm denies all of these claims as a “transparent attempt to extract money.”
Technical Indicators Show Independent Strength
This rally, at all looks, seems purely technical and self-driven; as for LUNC, it smashed its average closing price over the past 200 trading days, near to USD 0.00004910, signaling a bullish trend, along with the Altcoin Season Index. But keep an eye on it as the renewed market interest in these tokens (LUNC and LUNA) may be tricky and retreat.
Terra Classic (LUNC) Price
Terra (LUNA) Price
Despite the bullish short term (by now) interest, it will be hard for both tokens to maintain the trend as they are consolidated in a bearish channel (with some climbs in the middle). LUNC and LUNA would need a strong push towards a fundamentals shift to keep the attention and traders’ interest. But if you thought Terra was dead already, NO. They haven’t released upgrades in a very long time, although the chain is still used for some developments.
