Loopring rises 12% – 3 factors that will help LRC bulls further
Key Takeaways
Loopring exhibited good levels of on-chain activity. Combined with the breakout from the triangle pattern, the chances of an LRC rally look good in the coming days.
Loopring [LRC] witnessed a 2,383% increase in daily trading volume, according to data from CoinMarketCap.
The $136.15 million market cap altcoin saw $332 million in volume in the past 24 hours, more than twice its market cap.
In fact, altcoins such as Ripple [XRP], Story [IP], and Axie Infinity [AXS] saw a surge in trading volume on the South Korean exchanges, Upbit and Bithumb, over the weekend.
In that context, Loopring’s activity increased not only on Bithumb but also on Binance and MEXC.
Triangle pattern breakout for Loopring
Source: LRC/USDT on TradingView
The increased volume came at a fortuitous time for LRC. Over the past six weeks, LRC consolidated within a symmetrical triangle before breaking out bullishly on the 31st of August.
However, bulls quickly ran into resistance near $0.12 and were fighting to flip $0.1 to support at the time of writing. The $0.09-$0.1 area appeared to be a sturdy demand zone to the south.
Therefore, the triangle breakout should offer buyers a good opportunity to add Loopring to their holdings.
OBV, which had trended higher throughout August, spiked sharply alongside the move. On top of that, the breakout was reinforced by rising volume and supportive moving averages, both pointing toward bullish momentum.
The immediate targets were reclaiming $0.10 as support and pushing toward $0.125.
Profit-taking fears muted
Source: Santiment
The on-chain metrics also signaled market confidence in the token.
Daily Active Addresses saw a dip in the second half of August, but have been steady since July. It spiked higher on Sunday, as did the token’s Velocity and Transaction Volume.
Velocity measures the average number of times a single token changes addresses daily. Higher figures show the token is more frequently traded.
Having said that, sharp increases in velocity sometimes hint at profit-taking, raising caution.
Moreover, Dormant Activity remained silent, quelling fears of a network-wide distribution. Therefore, Loopring holders can remain hopeful of further gains.