Terra Luna price went vertical on Monday even as its ecosystem risks rose. The LUNA price jumped to a high of $2.90, which was the highest level since September 19. It has risen by more than 37% from the lowest level on Monday.
Do Kwon becomes a fugitive
Terra Luna is a relatively new cryptocurrency that was launched in May following the collapse of its previous ecosystem. The project is led by Do Kwon, who created Terra to become one of the biggest cryptocurrencies in the world.
Terra 2.0’s goal is to develop a vibrant ecosystem using the lessons learned from the implosion of the previous platform. It has several projects in its ecosystem like Redacted Money, Astroport, Eris Protocol, and Phoenix Finance among others.
While the ecosystem is having a slow recovery, focus among developers and traders has become Do Kwon. Last week, South Korea’s prosecutors said that he was missing. Similarly, Singapore’s authorities said that he was not in the country.
In a tweet, Do Kwon reiterated that he was collaborating with law enforcement officials from several countries. He also said that he was not hiding.
The situation worsened on Monday when Interpol issued a red alert on Kwon, effectively making him a fugitive. As such, this means that he could be arrested by any police officer and deported back to Singapore.
Therefore, it is unclear why Terra Luna price jumped. Other coins associated with Kwon like USTC, Terra Luna Classic, Mirror Protocol’s MIR, and Anchor Protocol’s ANC also went vertical.
This performance is likely due to a pump and dump scheme that is happening in the market. In the past few months, traders have been pumping stocks and cryptocurrencies that are in trouble. For example, Revlon shares rose after the firm filed for bankruptcy. Similarly, Voyager Digital’s VGX and Celsius’ CEL have done well recently.
Terra Luna price prediction
The four-hour chart shows that the LUNA price has been in a strong bearish trend in the past few weeks. As it dropped, it moved to a low of $2 on Monday and then went parabolic. The coin has jumped above the 25-day moving average while the MACD has formed a bearish divergence pattern.
Therefore, there is a likelihood that the coin will keep rising as bulls target the next key resistance level at $3.50. A move below the support level at $2.50 will invalidate the bearish view.
