Terraform Labs sues Jane Street; LUNC price eyed near $0.000039 amid legal uncertainty
Terraform Labs’ wind-down administrator has filed a lawsuit alleging trading firm Jane Street used non-public information from Terraform insiders to profit before the May 2022 TerraUSD collapse. The complaint claims Jane Street withdrew large amounts of UST shortly after internal moves, accelerating the stablecoin’s collapse and losses for creditors; Jane Street denies the allegations. The suit has refocused attention on Terra Classic (LUNC), which trades near $0.00003509 with a circulating supply of about 5.47 trillion. LUNC has shown short-term technical resilience, trading in a tight 24‑hour range ($0.0000343–$0.00003516) and remaining inside a flag formation that recently saw a slight break but not a sharp decline. Analysts note a possible short-term upside target around $0.00003925. Trading volume is modest (~$8.9m in 24h). Longer-term analyst projections for 2026 are wide, from a low near $0.0000242 to a high target near $0.000510. Key levels to watch: support around $0.000024 and resistance near $0.000510. The legal case adds uncertainty to market sentiment for LUNC and related assets and could influence volatility depending on developments.
Neutral
The news introduces legal risk that could increase volatility for LUNC but does not immediately change fundamentals. The lawsuit can weigh on sentiment and prompt short-term price swings as traders react to filings, statements, and court developments—especially given the historical significance of the Terra collapse. However, Jane Street’s denial and the absence of an immediate ruling limit decisive directional impact. Technicals show short-term resilience (tight 24h range, potential flag breakout toward $0.00003925) which supports limited bullish moves if sentiment stabilizes. In the short term, expect elevated volatility and cautious positioning around support ($0.000024) and near-term target ($0.00003925). In the medium-to-long term, outcomes of the litigation, any settlements, and broader market conditions (BTC/crypto market cycles, macro liquidity) will determine sustained direction; a plaintiff victory or large damages could be bearish by reducing confidence, while dismissal or weak case outcomes would be less damaging. This mirrors past events where legal actions or regulatory moves (e.g., exchange lawsuits, DoJ/SEC actions) amplified short-term volatility but only produced lasting price trends when outcomes materially affected supply, trading access, or project fundamentals.