Loopring price volatility is running out of steam but could come back with a vengeance
After declining 50% from highs, the price of Loopring has reached decision time, which I think will cause an explosive reaction.
Loopring (LRC) increased tenfold in two weeks in early November, as investors rushed to join the furious altcoin rally. The Ethereum-based LRC token was one of many “under the radar” cryptos that burst onto the mainstream, reaching record valuations last month. Between October 28 and November 10, Loopring’s market capitalization rose from less than $ 500 million to over $ 4.5 billion. However, like many digital assets that have seen parabolic rallies, LRC has fallen sharply from highs. But despite the decline, LRC still ranks as the 52nd most valuable cryptocurrency behind The Graph.
LRC Price Analysis
The daily chart highlights several significant developments. First, the price of Loopring is down 50% from last month’s high. Additionally, LRC is testing trendline support at $ 2,100. Due to confluent support, the Average True Range (ATR) indicator of 0.09 is at its lowest for four weeks.
Given the importance of the uptrend line, one of two outcomes is likely. Either LRC holds the line and bounces back to last week’s high of $ 2,980 or crashes through support.
If LRC starts to collapse, a return to the December 4 low of $ 1,620 is likely. However, a more pronounced correction could extend to $ 1.130 (Fibonacci retracement level 0.786).
Although LRC holds the line, I am leaning towards a bearish result. However, the negative view relies on a close below the trend. On this basis, I am on the sidelines, awaiting confirmation.
See also
Loop price table (4 hours)
For more market information, follow Elliott on Twitter.