LUNC up 40% on Monday as Do Kwon faces arrest

Terra classic gained more than 40% on Monday as markets reacted to news that founder Do Kwon was wanted by Interpol. Cosmos also traded higher, rebounding from recent declines.

Terra Classic (LUNC)

Terra classic was one of the most notable moves on Monday, as the token rose over 40% to start the week. After a low of $0.0001825 on Sunday, LUNC hit an intraday high of $0.0003272 earlier in the day.

The move came after Interpol issued a red notice for Terraform Labs co-founder Do Kwon.

Looking at the chart, today’s rally came after a failed attempt to break the $0.0002375 LUNC floor, with the bulls pushing prices higher.

Historically, this level has been an area where a significant amount of bullish pressure has resided, as evidenced by a similar move on September 5. At the time of writing, bulls may face an obstacle in the form of a resistance level at 55.00 on the 14-day relative strength index (RSI).

If this hurdle is overcome, then we will likely see traders attempt to take LUNC near a $0.0003820 ceiling.

Cosmos (ATOM)

In addition to terra classic, cosmos also rose during Monday’s volatile session as the token continued to rebound from its recent losses. ATOM hit a high of $14.85 earlier this week, sending prices higher for a second consecutive session.

Following last Wednesday’s Federal Open Markets Committee (FOMC) meeting, ATOM fell below its $13.35 support point. However, it has since largely consolidated.

The token has gained nearly 5% from Sunday’s low of $13.71 and is currently trading at $14.79. Despite Monday’s price spike, the 10-day moving average (red) appears positioned for a downward crossover, which could be a sign of further declines.

Currently, the RSI is below a ceiling of 54.00, and if it passes that point, we could see sentiment in the cosmos change.