Falling Wedge Points to a Breakout
Loopring price has been in a strong bearish trend in the past few weeks. The LRC coin plunged to a low of $0.2070, which was about 51% from its highest level this month. The current price is about 23% above the lowest level this month, giving it a market cap of more than $337 million. So, what next for the LRC prices?
Is LRC a good buy?
Loopring is a leading layer-2 blockchain project in the trading and NFT industries. Its trading platform makes it possible for people to trade cryptocurrencies in a decentralized manner. It makes trading on Ethereum’s network significantly cheaper than in other Ethereum DEXes like Uniswap. The network has about 100x lower fees.
Loopring is also an active player in the non-fungible token (NFT) industry. Its main NFT product is its partnership with GameStop, the leading game retailer in the United States.
Loopring price has been in a strong bearish trend in the past few weeks. The most obvious reason for the recent crash was the ongoing FTX meltdown. In fact, it is relatively difficult to see the coins that have not crashed in the past few days.
LRC price then dropped because of a DDoS attacks in the network. The attack started on November 4th of this year. However, unlike other attacks, no assets were stolen. A DDoS attack in Loopring means that users could simply move their assets back to Ethereum’s layer 1 with no permissions.
Loopring price prediction
The LRC price has been in a tight range in the past few days. A closer look shows that the coin has moved slightly below the 25-day and 50-day moving averages. At the same time, the Stochastic Oscillator moved above the neutral level.
Loopring has also formed a falling wedge pattern that is shown in black. In price action analysis, this pattern is usually a bullish sign. Therefore, there is a likelihood that the coin will have a bullish breakout as buyers target the next key resistance at $0.30. A drop below the support at $0.23 will invalidate the bullish view.
