Crypto Market Review, September 28

Luna Classic’s price performance was a pleasant surprise for holders as the token was able to withstand the huge selling and shorting pressure coming from traders and break through all resistance levels going forward, but not for long.

According to the daily chart of the asset, LUNC reversed massively, losing around 10% of its value in 24 hours, as traders saw no fundamental support behind the rally. The main fuel for that was Binance’s agreement to implement a 1.2% transaction fee. All funds from the transaction will be sent to the burning address.

The initiative to burn LUNC was proposed to support the asset’s value on the market, as it has been actively pushed down by traders who have not seen any potential for the asset associated with one of the most dubious people in the entire industry, Do Kwon.

However, industry experts did not expect anything exceptional even after the implementation of the proposal, as the burning mechanism is not enough to prevent assets from continuously falling down. Use cases and network revenue are two fundamental factors that investors typically consider when looking for assets to invest in, and unfortunately LUNC has neither.

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For now, LUNC bulls are desperately trying to prevent the asset from falling back to the values ​​we saw a few days ago, but the trading volume and online flow around the asset show that bears are slowly regaining control of the token and will most likely continue to provide selling pressure for it.

The market is facing a new wave of selling pressure

Despite Bitcoin’s run above $20,000, the market has faced yet another increase in selling pressure, with medium and long-term investors actively taking profits at the aforementioned price level. The first cryptocurrency has already returned to the price level we saw before the pump.

The lack of fundamental reasoning behind the Bitcoin rally may be the main reason we are seeing such a rapid reversal from an important psychological level. Unfortunately, the reversal around the 50-day moving average was more than expected by the market, considering the movement of funds in addresses owned by whales and large retail investors.

With the plunge of the first cryptocurrency, altcoins are also facing increased selling activity from both smaller traders and large investors. Ethereum has already lost more than 7% of its value since yesterday’s peak.

Among the biggest losers on the market is XRP, which used to be the market leader. However, the lack of positive news from the court and the reversal in the crypto market in general led to the reversal from the 200-day moving average.