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Most crypto assets are witnessing slight profit-taking on Wednesday. Loopring (LRC) is up 63% in the last 24 hours at a present price of $3.82. Loopring is a layer-two (L2) scaling solution for the Ethereum network that utilizes zk-Rollups to help decrease fees and increase throughput for DEXes and payment protocols. Taken from Nov. 5 lows of $1.06, Loopring has exploded 225% to mark fresh record highs of $3.88 today. Now in the top 50 by market valuation, Loopring has seen an astounding rise since late October when a leak in the Loopring GitHub public repository indicated a possible partnership deal with GameStop for an NFT marketplace. The sustained momentum comes as Loopring continues to offer lower transaction fees compared to other L2 solutions including Arbitrum and Optimism as fees on the Ethereum network remain hiked. Metrics from on-chain Data Analytics, Santiment also indicates massive growth on the Loopring Network and a rising address activity, as more than 1,600 new LRC addresses were created since Nov. 8.
Resistance levels: $6.00, $5.00, $4.00
Support Levels: $2.58, $1.97, $1.58
LRC/USD Daily Chart: Bullish
LRC/USD Daily Chart
Loopring accelerated to fresh all-time highs of $3.88 today as it sets to mark the sixth consecutive in green. Loopring saw a price breakout from a month-long consolidation bout and extended its upside run after resolving a bullish pennant on Nov. 8. The staggering move has pushed the RSI to overbought levels.
A slight pullback should not be surprising in the near term if the market confirms overbought conditions. However, this may provide a buy-the-dip scenario. The $3 level could immediately add footing to the LRC price in case of a pullback ahead of the major $1.71 and $1.03 levels. Otherwise running higher in the uncharted territory, the bulls may target the $4 and $5 levels.
LRC/USD 4-Hour Chart: Bullish
LRC/USD 4-Hour Chart
The LRC/USD pair is bullish on the 4-hour chart. A double bullish pennant has been resolved and the LRC price is proceeding further up. A break past $3.49 high should see a continuation move targetting $4 and $5 levels. Otherwise, if the price retraces towards the $3 psychological level, we might see another push to the upside, aiding the present move.
In the case of sustained declines, the $2.51 and $1.71 levels may come in as support. Only a break below the MA 50 at $1.57 could provide bears with more momentum targeting the $1.06 level. Overall, Loopring remains in an uptrend, supported by strong fundamentals and speculations around the Gamestop NFT marketplace. A pullback may result in a consolidation pattern before the continuation of the upside move.
