Crypto Market Review, September 26
The market is still in a downtrend, and XRP’s reversal from the local peak is yet another confirmation of that
XRP’s latest success in court didn’t last as long as some investors had hoped, and the cryptocurrency is quickly shedding around 6% of its value in the last few hours, showing that bulls are losing control of the asset in the market.
Has the peak been reached?
In our previous market review, we highlighted the importance of the 200-day moving average, which acts as a barrier to downtrending assets. XRP bulls had no choice but to further push the price of the asset higher to avoid an even lower drop.
Unfortunately, the lack of trading volume and gradual decline in inflows led to an 18% reversal from the local high of $0.56. If bulls are unable to hold the asset’s value above the aforementioned moving average, we will most likely see the return to the downtrend that the asset has been in for a year.
On shorter time frames, the asset looks more positive as it broke through key local resistance levels. However, with the asset’s price performance showing a worsening trend, XRP will fall below support levels on shorter time frames.
Advertisements
LUNC’s unexpected 40% recovery
The Luna Classic price performance was a real rollercoaster with its fiery mechanism implementation and the first denial received by Binance and other major centralized cryptocurrency exchanges and unexpected agreement to implement the transaction fee.
Thanks to the positive decision, LUNC saw a massive 40% price increase as the asset will most likely become deflationary if the transaction fee works as intended. Previously, LUNC developers proposed implementing a 1.2% fee from each transaction on the network.
Coins taken from each operation will go to the burn address immediately, creating pressure on the circulating supply of tokens and easing the pressure on the market.
However, most analysts do not believe in LUNC’s long-term growth as the token does not have much use except for speculation, which is why deflation cannot become a solution to the poor performance of LUNC in the future.
Bitcoin is still in trouble
Despite the upswing we saw in the market recently, Bitcoin is still in a bad state as the first cryptocurrency is facing huge selling pressure caused by the massive US dollar rally.
The currency hit a 20-year high in disruptive fashion, gaining nearly 4% in less than a month despite the forecast of most analysts betting on a short-term correction against a foreign currency bracket.
For now, the $19,000 support level still holds, but bulls are in no rush to invest new capital to push the price of the first cryptocurrency higher. The prolonged consolidation from here is the most likely scenario, considering the conditions in the market we see today.
