In keeping with a report, an arrest warrant has been issued by a court docket in South Korea in opposition to the founding father of Terraform Labs, Do Kwon, and 5 others. The report in query went on to say that the allegations in opposition to Do Kwon embody violations of the nation’s capital markets legal guidelines, amongst others.
South Korean authorities consider that Do Kwon and the others named within the arrest warrant at the moment are residents in Singapore. Quite the opposite, a statement by the Singapore Police Drive on 17 September claimed that Do Kwon will not be within the nation.
In a collection of tweets put out by Do Kwon himself, the exec denied being “on the run.” In truth, he claimed that he’s “within the technique of defending” himself and others “in a number of jurisdictions.”
I’m not “on the run” or something related – for any authorities company that has proven curiosity to speak, we’re in full cooperation and we don’t have something to cover
— Do Kwon 🌕 (@stablekwon) September 17, 2022
For sure, in mild of the aforementioned updates, it will likely be attention-grabbing to take a look at how LUNA reacted on the worth charts.
Arrested development for LUNA
LUNA holders initiated a “pump and dump” rally not too long ago, one which noticed the worth of LUNA surge by 260% only a week in the past. On 11 September, the coin was buying and selling for as excessive as $7.06 on the charts.
It logged a complete 24-hour buying and selling quantity of $1.75 billion that day. In keeping with CoinGecko, the worth rally brought on the asset’s market capitalization to log a 209% increment – From $321 million to $995 million over the identical timeframe.
Shedding most of its beneficial properties because the issuance of the arrest warrant, nonetheless, LUNA exchanged fingers at $2.99 at press time. In truth, the crypto-asset’s value has gone down by 39% since 14 September.
Whereas the worth fell, the report of Do Kwon’s imminent arrest on 14 September led to a hike in LUNA’s buying and selling quantity. The value/buying and selling quantity divergence logged that day, nonetheless, hinted at coin distribution as buyers who had acquired the asset through the 11th of September September rally scampered for earnings.
Since 14 September, the every day buying and selling quantity for the asset has dropped by over 55%. At press time, this stood at $426.56 million, in accordance with Santiment.
What does the 24-hour chart say?
On the every day chart, the bulls appeared to have misplaced the battle to the bears within the LUNA market. Following the worth surge between 9 and 11 September, the momentary bull run noticed the Transferring Common Convergence Divergence (MACD) recording inexperienced histogram bars. Nevertheless, a brand new bear cycle was initiated on 16 September when promoting strain rallied. This was signified by a downward intersection of the MACD line with the trendline.
A take a look at the Exponential Transferring Common (EMA) confirmed that the bears had the higher hand. On the time of writing, the 20 EMA (blue) was under the 50 EMA (yellow) line, exhibiting that sellers managed the market.
With LUNA’s Chaikin Cash Movement (CMF) positioned at -0.11, important coin accumulation is required to ignite the severely declined shopping for strain.