Luna Classic's price performance was a pleasant surprise for its holders as the token was able to withstand the enormous selling and shorting pressure that was coming from traders and to break through every resistance level ahead, but not for long.
According to the daily chart of the asset, LUNC reversed massively and lost around 10% from its value in a matter of 24 hours as traders saw no fundamental support behind the rally. The main fuel for it was Binance's agreement to implement a 1.2% transaction fee. All funds from the transaction will be sent to the burn address.
The initiative to burn LUNC was proposed for the sake of supporting the asset's value on the market as it has been pushed down actively by traders who have not seen any potential for the asset related to one of the most questionable personas in the whole 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 keep assets from continuously falling down. Use cases and network revenue are two fundamental factors that investors usually consider when looking for assets to invest in, and LUNC, unfortunately, does not have either of those.
As for now, LUNC bulls are desperately trying to keep the asset from falling back to values we saw a few days ago, but the trading volume and the netflow around the asset show that bears are slowly taking back control over the token and will most likely continue to provide selling pressure for it.
Market faces another selling pressure wave
Despite Bitcoin's run above $20,000, the market has faced yet another spike in selling pressure, and mid- and long-term investors were actively taking profits at the aforementioned price level. The first cryptocurrency has already returned to the price level we saw prior to the pump.
The lack of fundamental reasoning behind the Bitcoin rally could be the main reason why we are seeing such a swift 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 on addresses owned by whales and large retail investors.
With the plunge of the first cryptocurrency, altcoins are also facing increased selling activity coming 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's leader. However, the lack of positive news from the court and the reversal on the crypto market in general led to the reversal from the 200-day moving average.