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- 1 Loopring and the MVRV ratio are moving in the same direction.
- 2 The LRC price is trading under a tightened range, and it needs a boost in price momentum to break out of it.
Loopring is a DeFi platform that delivers protocols, infrastructure, and products for the next generation of finance. It strives to create a low-fee, fast platform for trading, swapping, liquidity provision, and payments while protecting the security and sovereignty of user assets. Loopring implements the first zkRollup protocol on Ethereum, which ensures that exchange and payment applications cannot touch or lose user assets.
Loopring was established by Daniel Wang, a software engineer based in China. Wang had previously worked in Google and JD(dot)com. It is an Ethereum-based project launched in June 2017 and has expanded into a multifaceted effort across the stack, from protocol to product.
Users can access Loopring’s decentralized exchange and payment platform by using the Loopring Layer2 App, which is powered by the Loopring protocol and run by the Loopring relayer. The app provides a gas-free, fast, and secure trading and transfer experience. Users can also use the Loopring Wallet, a self-custodial smart contract wallet with Loopring zkRollup embedded. The wallet allows users to swap on the AMM, trade on the books, invest and earn in DeFi, and send payments to anyone, anywhere.
Loopring Price Daily Chart Analysis
The Loopring is showing a downtrend, and formed a channel between the support and resistance lines. The LRC price tried to bounce back several times, but could not break the resistance level. The LRC price was squeezed in a tightened range.
The LRC price is struggling to stay near the trendline resistance, which is a key obstacle. The LRC price needs a spike in buying pressure to overcome this hurdle, or else, the price will continue to decline.
On analyzing the chart on a daily time frame, the price of the LRC/USD pair has risen by 9.34% since the start of the year. The LRC price is trading under a tightened range, and it needs a boost in price momentum to break out of it.
The LRC/USD could start a phenomenal rally if it breaks the $0.250 level, which is near the resistance trendline. It could mark new altitudes in the upcoming sessions. Buyers look geared up to overcome the barriers and launch to new price levels from its current price. On the contrary, if LRC/USD falls, then it could decline to $0.15.
LRC/USD is currently trading between the major exponential moving averages. If more buyers enter the market, this pair could rise by making higher highs and new highs. Therefore, the LRC price is likely to move upwards and show a bullish outlook on the daily chart.
30-Day MVRV Demonstrates its Price Might Trigger and Rise
This chart displays the relationship between the Loopring cryptocurrency price and the MVRV rate over the last 30 days. Basically, it is used to estimate the average profit or loss of the investors who purchased a particular asset over the past 30 days.
As it can be seen from the chart, the price of Loopring and the MVRV ratio are positively correlated with each other and they tend to move in the same direction.
As the price rises, the MVRV ratio also rises, indicating that more investors can make money. Likewise, as prices fall, the ratios follow suit, meaning more investors are likely to lose money.
This chart highlights a consolidation phase, as the graph has not been displaying any significant movement for a while.
Summary
The Santiment tool chart of Loopring shows a positive correlation between its crypto price and the 30-day MVRV ratio, which means that they both tend to move together.
Moreover, in the daily time frame, it looks like Loopring is trying to maintain and getting ready to trigger a remarkable rally out from the channel with the support of buyers. This could indicate that the bulls might take over Loopring and could push its price above the resistance level and higher from the current level.
Technical Levels
Support Levels: $0.150
Resistance Levels: $0.250
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
