Terraform Labs’ Bankruptcy Hearing: Impact on LUNA, LUNC, USTC Prices
coinedition.com 02 September 2024 13:44, UTC LUNA, LUNC, and USTC, the three cryptocurrencies tied to Terraform Labs, have shown mixed performance in the weeks leading up to the company’s bankruptcy plan hearing, scheduled for September 19. The court will decide whether to approve Terraform Labs’ restructuring plans or force it to liquidate.
Less than three weeks to the hearing date, LUNA, the native crypto of the public protocol that emerged from Terra Classic, has been particularly volatile. It recently experienced a surprise 184% rally, surging from $0.000030 on August 20 to $0.000084 in just one week.
The recent rally saw the altcoin break above a double-top around $0.000056 before registering a new yearly high. However, the price pulled back slightly to test a newly created Fibonacci support around $0.000070 at the time of writing, according to data from TradingView.
LUNC’s price pattern differs slightly from LUNA’s, as it reversed its uptrend two days earlier. The magnitude of their rallies also varied significantly, with LUNC surging only 29% compared to LUNA’s 184%.
According to TradingView’s data, LUNC’s rally started on August 16, when the crypto token bounced off support at $0.000074156. The altcoin surged to a $0.000095699 local high before embarking on a pullback. Following the trend reversal, LUNC lost all the gains in the recent rally by returning to support around the $0.000074156 region.
Read also: Terraform Labs Bankruptcy: Key Hearing Set for Sept 19
Meanwhile, USTC, the Terraform Labs ecosystem stablecoin, mirrored LUNC’s trend pattern, with their prices rallying and declining together. However, the proportion of each asset’s price movement differed. USTC surged about 48% before losing nearly all those gains in a subsequent pullback.
Notably, USTC has remained within a specific price range since the start of Q3 2024, trading between $0.0226 and $0.0124. The stablecoin has moved sideways despite experiencing volatility not typically seen in other top stablecoins.
Read also: Is Terra Classic Staging a Comeback? LUNC Achieves a 58.68% Rebound in Days
With the court’s impending decision on Terraform Labs’ future, the lack of uniformity in the ecosystem’s tokens’ price action could raise concerns among the project’s community members.
Terraform Labs has faced challenges for the past two years since its TerraUSD (UST) stablecoin lost its peg to the U.S. dollar in May 2022.
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