LUNA Price Prediction August 21: Terra Faces Bankruptcy Hearing, Will $0.328 Support Hold?

Terraform Labs (TFL), the entity responsible for the Terra blockchain ecosystem, has officially confirmed the date for a crucial bankruptcy hearing. 

This development is pivotal for the Terra community as it grapples with the project’s ongoing financial difficulties. The bankruptcy hearing, part of the Chapter 11 reorganization process, is set to take place on September 19, 2024, at 10:00 AM ET. 

Bankruptcy Hearing Scheduled for September 19

On August 21, 2024, Terraform Labs disclosed on X that the hearing to confirm its plan under Chapter 11 of the United States Bankruptcy Code would take place on September 19. This hearing is the key moment for the reorganization of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL).

Important Notice for the Terra Community regarding the Plan Confirmation Hearing:

The Plan Confirmation Hearing in the Chapter 11 bankruptcy cases of Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) has been set to September 19, 2024 at 10:00 a.m. (ET).

For more…

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) August 21, 2024

Creditors are encouraged to submit their Preliminary Crypto Loss Proof of Claim forms on or before August 21, the close of business, to be included in the voting process regarding the Chapter 11 Plan. 

The Chapter 11 bankruptcy was filed in 2024 after Terra shifted legal control of LUNA to Terraform Labs in Jan 2024. On June 2024, in the court case involving the United States Securities and Exchange Commission SEC, Terraform Labs agreed to a $4.47 billion settlement.

Market Reaction and Current LUNA Price Analysis

Within the Terra community awaiting the bankruptcy hearing, there is still a lot of fluctuation in the market. The current spot price of Terra blockchain’s native token LUNA is $0. 328381 with a 24-hour average trading volume of $ 21,117,230, although there has been a very marginal upswing of 0.02% of the sample within the last 24 hours. 

LUNA has displayed good market trading activity, ranging with both ups and downs, as is natural, with most tokens at $0.325 and $0.335 in the last 24 hours. The price went as low as below $0.328, then marginally increased to $0.335 as it started its fluctuations up again at approximately 8 AM. 

Source: CoinMarketCap

Nevertheless, this increase was temporary because the price began to decline and stabilized at about $0. 328 at the end of the trading period. Such behavior indicates that the market is still in the process of forming and that both consumers and producers have not yet set the perfect course.

Analyzing the charts of the LUNC token, which is also associated with the Terra ecosystem, one can observe the same market trends. The LUNC price has been insensitive to changes in the market situation over the past year; however, some notable price rises were detected in late October 2023 and at the beginning of January 2024.

MACD and RSI are trending in bearish territory, as shown below. Hence, for the stated aim to be achieved, it is business as usual and business as unlikely. MACD is also negative and in bear territory; furthermore, it has entered the negative territory of a crossover, which means that the MACD line is below the signal line having negative histogram values. 

Source: TradingView

The RSI is 43.38 right now, just below the mid-line bull figure of 50, which depicts LUNC as somewhat oversold.