Terra Classic price prediction as Terraform Labs files lawsuit against Jane Street

Terraform Labs’ bankruptcy administrator has filed a lawsuit in Manhattan accusing trading giant Jane Street of playing a key role in the 2022 collapse of Terra’s ecosystem.

Terraform blames Jane Street insider trading for collapse

The complaint alleges that Jane Street front-ran the depegging of UST and helped trigger the death spiral that wiped out roughly $40 billion in market value.

According to the filing, Terraform quietly withdrew 150 million UST liquidity from Curve in May 2022. Minutes later, Jane Street allegedly dumped 85 million UST, accelerating the depeg. Panic spread quickly, UST lost its dollar peg, and LUNA hyperinflated due to its mint-and-burn mechanism.

The suit further claims a Jane Street trader, a former Terraform intern, shared insider information in a private group chat dubbed “Bryce’s Secret.” The firm allegedly avoided more than $200 million in losses and profited during the meltdown. Jane Street has denied the allegations, calling the lawsuit baseless.

Terra Classic price analysis

Amid the renewed headlines, Terra Classic (LUNC) is trading around $0.00003497 at press time on the daily chart. Price remains below the 50-day simple moving average, which sits near $0.00003790, signaling that the broader trend is still tilted to the downside.

The chart shows a series of lower highs since early January, confirming bearish structure.

However, recent candles suggest short-term consolidation after a sharp early-February sell-off that briefly pushed price toward the $0.00003000–$0.00003200 support zone. That area now acts as key near-term support.

On the upside, immediate resistance sits at $0.00003600, followed by the 50-day SMA near $0.00003790. A sustained break above that level could open the door toward $0.00004000.

The Chaikin Money Flow (CMF) indicator is slightly positive at 0.05, suggesting mild capital inflows, but not strong accumulation. Unless LUNC reclaims its moving average, rallies may face selling pressure.

A breakdown below $0.00003200 would likely expose the psychological $0.00003000 level again.