- Loom Network ($LOOM) like other altcoins started the year 2020 with some positive momentum.
- After over a quarter of void performance, $LOOM came back into life amid the Defi Boom.
Loom Network ($LOOM) like other altcoins started the year 2020 with some positive momentum. In February, $LOOM recorded a surge of more than 117%. Loom Network saw an instant correction in its price as $LOOM fell by almost 51% following the wave that brought the value of the coin down to $0.018. Furthermore, $LOOM slowly started to upsurge, but the great March crash pushed it even down.
After registering major losses throughout the Black Thursday price crash in March, Loom has since been trading sideways. LOOM’s price movement has been on a downtrend. Looking into the continuous downtrend in $LOOM during April and May, $LOOM was officially declared dead due to lack of its movement technically or fundamentally.
The project is not very popular, even though its market cap soared to nearly half a billion in early 2018. Nevertheless, the past two years were not kind to Loom network, and the token’s market cap currently sits above $42 million.
After over a quarter of void performance, $LOOM came back into life amid the Defi Boom, the month of July and August were godsent for the crypto asset. As of recent $LOOM showcase extreme bullish momentum recording a new 2020 high of $0.40, but for how long will the bullish sentiment sustain itself for the Cryptoasset? Well, this seems to be a very popular question.
$LOOM Price Analysis
$Loom had a nice uptrend for the past month. Right now it reached the first resistance which is 0.04 cents. Looking at weekly Relative Strength Index RSI indicates overbought zone, it would be healthy for loom to retrace and consolidate either above this resistance or below it for another leg towards 0.08 cents.
The 20-day Exponential Moving Average is very close to cross 50-day EMA on weekly. Loom shows good signs of live and price has been rapidly increasing. It can be confidently assumed that Loom can easily double till end of Q4.
Based on RSI, It is observed that loom will be consolidating under resistance for few weeks. This would mean a second wave should be coming soon. Unless bulls can push it through this resistance. LOOM is facing resistance and slowly forming a pattern where it could consolidate.
However, the parabolic sar confirms bearish scenario printing dots above the candles. This is what we could expect in coming weeks.