LUNC Defies Do Kwon’s Guilty Plea—Bullish Price Pattern Hints at Explosive Rally

Luna Classic (LUNC) charts flash green despite founder's legal drama. The 'dead' token's technicals now suggest a potential breakout—because nothing fuels crypto rallies like irony.

Subheader: Technicals Trump Troubled History

The same chart patterns that predicted LUNC's 2022 collapse now signal an upside reversal. Traders are piling in, betting regulators will focus on newer disasters.

Subheader: Market Ignores Founder's Legal Woes

Do Kwon's guilty plea barely dented LUNC's momentum. Because in crypto-land, bad news is old news by breakfast—and lunch is always a speculative frenzy.

*Cynical finance jab: Nothing revives a zombie coin like fresh bagholders chasing 'the bottom.'

LUNC price forms inverse head-and-shoulders pattern

On the four-hour chart, LUNC peaked at $0.00007235 in July before pulling back as bullish momentum faded. Recently, the token has formed an inverse head-and-shoulders pattern, with the head at this month’s low of $0.00005518 and shoulders around $0.000059.

This pattern’s neckline is at $0.00006440, where it failed to move above on July 28 and August 10. Therefore, a move above that level will confirm the bullish LUNC price forecast and point to more gains, possibly to the July high of $0.00007235. 

The distance between the pattern’s neckline and the head is about 14%. Measuring the same distance from the neckline gives the target price at $0.00007350. 

A drop below the shoulders section at $0.00005960 will invalidate the bullish Terra Luna Classic outlook. 

Dow Kwon guilty plea and Terra Classic token burn

The main catalyst for the LUNC price this week was Do Kwon’s decision to plead guilty to wire fraud charges. This case centered on the $40 billion collapse of Terra and its ecosystem. 

Kwon faces up to 12 years in U.S. prison and potentially more in South Korea, where he also faces charges related to Terra’s collapse.

His legal troubles are unlikely to impact LUNC directly, as he has had no involvement in the project since its collapse. LUNC has since been taken over by the community, while Kwon launched Terra 2.0.

Meanwhile, token burns continue to support LUNC’s long-term outlook. More than 836 million tokens were burned in the past seven days, bringing the cumulative total to 415 billion. Burns reduce circulating supply, making the token more deflationary and potentially supportive of higher prices.