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LUNA’s 8% surge may be noteworthy but a trip down south may be on the cards

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Terra LUNA founder Do Kwon could be facing the heat despite acting like the South Korean arrest warrant was not his concern. In a new turn of events, things seemed to be working against Kwon after a Bloomberg report showed that he was facing challenges in far-away Singapore. 

According to the report, Kwon was struggling to renew his employment permit or register a business in the country.

A LUNA-tic move still

However, the project’s founder was not the only one struggling. LUNA, whose collapse was the subject of a market capitulation in May, was also in weekly ruins. According to CoinMarketCap, LUNA’s weekly performance was a 47.51% drive down the charts at press time. This performance was the worst out of the top 100 cryptocurrencies in market value.

Interestingly, this decrease came after LUNA’s 200% rally a few days back. While there were conversations that it was still a pump and dump, the overall performance may have proven the suggestions right. However, it seemed that LUNA was not one with its seesaw.

Based on the price movements on the charts, LUNA had a similar move during the past week that led to significant declines. On 12 September, there was a case of an engulfing candlestick pattern. This pattern made LUNA fall from $5.41 to $3.95. It was a similar case on 14 September as LUNA plunged from $4.52 to $2.45.

Source: TradingView

The Relative Strength Index (RSI) showed that LUNA had fallen to the overbought zone pressure. The RSI then revealed that LUNA buyers were trying to recover as it remained at 45.13.

Source: TradingView

However, the Chaikin Money Flow (CMF) and Money Flow Index (MFI) had contradicting opinions. According to CMF, the money flow was not in buyers’ control, with its value at -0.06.

As for the MFI, the technical oscillator showed that while LUNA’s overbought region was back below, the money flow was not as insufficient as the CMF.

Where’s the next stop?

At press time, the next stop for Kwon and LUNA were on opposing sides. While emerging reports revealed that South Korean authorities were working to revoke the founder’s passport, the coin was heading towards some revival.

CoinMarketCap data showed that LUNA had increased 8.43% in the last 24 hours. Concurrently, the volume was also up 39.49%, with its value at $734,951,946. Despite the uptick, LUNA traders may need to halt on high expectations as a tumble from its current momentum is never out of the options. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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