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LUNC's Suspicious Rally Continues, What's Behind It? Crypto Market Review, Dec. 26

Mon, 12/26/2022 - 23:50
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Arman Shirinyan
Market does not seem to bring any more traction ahead of new year
LUNC's Suspicious Rally Continues, What's Behind It? Crypto Market Review, Dec. 26
Cover image via stock.adobe.com

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Contents

The end of one of the worst years for the cryptocurrency market is near. Unfortunately, 2022 did not bring us any pleasant Christmas surprises, and the majority of crypto assets are still in stalemate or moving downward.

LUNC moving upward

The proposal to bring some L1 developers back to the project to finish certain tasks tied to the asset is still dragging Luna Classic upward. However, sentiment among investors remains mixed after the inability of the team behind it to make the burning mechanism work.

LUNC
Source: TradingView

Despite all the talk and marketing that current managers are pushing forward, the asset is still trading 74% below its ATH reached back in September. The drawdown from the ATH of the original LUNA is far above the number we named.

Unfortunately, it is too difficult to tell how long the failed token will be able to stay afloat, but risks tied to it are far higher than the reward it may bring in the future. Those who grabbed LUNC at listing, will have to wait for a 180% price increase from the current price level.

Ethereum's issuance spike

While the price performance of Ethereum is relatively stable on the market, things happening in the background show how miserable the whole network is at this point: Ether's issuance has spiked dramatically, and supply issuance since the Merge has reached a record-breaking 4,160 ETH. The same value less than a week ago was at approximately 2,500 ETH.

A noticeable spike was caused by the plummeting activity on the network. On Christmas holidays and ahead of the new year, investors tend to leave the market and spend time with their friends and family, which directly affects the activity on any blockchain networks.

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According to ultrasound.money, Ethereum's network fee is currently at 10 Gwei, which is considered below average. Low transaction fees on the network and rising issuance are also confirming the plummeting activity of the network.

Unfortunately, we are unlikely to see the recovery of the second biggest asset in the industry until next year. At press time, Ethereum is trading at $1,220, gaining more than 4.7% to its value since reaching the local low last week.

The volatility of Ethereum is following Bitcoin, with the price of the asset moving on the same level for the last six days.

DOGE went to sleep

The low volatility of the market and nonexistent demand for risky assets led to a new negative record for Dogecoin. The market witnessed the lowest trading volume on the asset since October, and the reasons are unchanged, as meme coins and tokens are not in demand.

With the market entering holiday anemia, Dogecoin and other assets that require a constant inflow of trading volume and speculation will most likely test new local lows prior to recovering in January.

Additional underlying metrics and indicators show that Dogecoin is currently moving in accordance with the rest of the market since interest in the meme asset has been low after Elon Musk stopped posting anything related to the asset and concentrated on his role as Twitter CEO.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.