Terra Luna price persists in public dismay as CEO Do Kwon is accused of voter fraud
- Tera Luna price is losing more than just bullish grounds as market sentiment festers in disdain.
- LUNA price could fall to $1.39 if the bears successfully print a closing candle below the 50% Fibonacci level on the daily chart.
- A close above $2.74 could invalidate newly established shorts and trigger a rally towards $3.79
Terra Luna continues the uphill battle as community members fire out with more controversial news against CEO Do Kwon.
Terra Luna price has an affinity for bad news
Terra Luna price is under public scrutiny once again. The highly controversial layer 2 token resurfaced on the chopping block Sunday, June 12, when a savvy crypto auditor took to Twitter with an accusation against CEO Do Kwon for voter fraud and policy infringement. According to Twitter @FatManTerra Columbus 5, a governance proposal for Terra Labs appears to be sneakily manipulated by a wallet that owns 5% of the entire Terra Luna 2.0 Token. This would be ok under a royal oligarch's rule, but for a community promoting decentralization and community governance, the accusation reeks of deceit and partisanship.
Fatman wrote on Twitter:
"They told you TFL doesn't vote. They told you TFL didn't get the drop. But you'll notice that every tiny thing they do is to extract more money out of the 'community' through wordplay and manipulation. He doesn't care about you. You are an instrument to him and always were. "
Terra Luna price has declined 20% since the newfound controversy made its way into the limelight. Today LUNA price trades at $2.29, just below a 50% Fibonacci retracement level surrounding the initial launch and spike of the LUNA 2.0 token on May 28. A close on the daily chart below the key Fib level could wreak havoc for investors and send the price 30% lower into the 61.8% retracement level at $1.64.
LUNA-USDT 8-Hour Chart
Terra Luna has lost more than just bullish grounds. From an aerial view, it appears the community has been divided into hopeful support and members unphased by authoritative promises. Members like @Fatmanterra want to ensure justice is served for the unprecedented collapse of UST stablecoin, which caused roughly $42 billion in losses. With that being said, the bulls have a lot of work to do.
An early downtrend invalidator could be a close above $2.74 on the daily chart. If the bulls can accomplish said price action, they may be able to trigger a countertrend spike back into $3.79, resulting in a 66% increase from the current Terra Luna price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
