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LRC is the Ethereum-based cryptocurrency token of Loopring, an open protocol designed for the building of decentralized crypto exchanges. The main idea behind Loopring is to combine elements of centralized and decentralized cryptocurrency exchanges to create a protocol that will enjoy its unique advantages and eliminate inefficiencies.
Let us look at the technical analysis of LRC.
Past Performance
LRC coin has a history of remaining around similar price levels for a very long time. However, in the past 1-year, it has started to show some volatility, with occasional freezes, in the price point, in between.
On November 13, 2021, LRC opened at $3.04. After a weekly change of -12.17%, it closed on November 19, 2021, at $2.67.
Source: https://www.tradingview.com/x/aIr9hpsW/
LRC Technical Analysis
Taking support at $2.171, the trend made an attempt to reverse itself. Today, it is not showing any significant deviation as it is trading around the previous support at $2.637. To predict future price movements, let us look at the indicators.
The OBV is showing that the buying and selling pressures are balanced, which means that the price is likely to remain stable today.
The Relative Strength Index for LRC is at 62.86%. The trend in the RSI chart is moving upwards, which shows that the bulls are gaining strength. The traders may consider taking a long position if the price moves upwards.
A bearish crossover can be seen in the MACD graph as the MACD line is moving below the signal line. Till now, there is no sign for the MACD line to move upwards, as both the lines are negative. This is a negative signal.
Loopring was up 18.9% yesterday, despite a decline across the broader crypto market. The hype surrounding ZK-Rollups may be the reason. Loopring is one of several Layer 2 projects focusing on helping Ethereum achieve scalability. It focuses on offering trading and payments on Layer 2. It uses ZK-Rollups to offer users faster and cheaper transactions while benefiting from the security of the Ethereum mainnet. The Ethereum community is hoping that ZK-Rollups, Optimistic Rollups, and the eventual launch of shard chains will help the network scale for mass adoption.
Day-Ahead and Tomorrow
LRC makes for a great long-term hold, as the team has proven that the Loopring protocol works. While cryptocurrency markets are going through a rough few days, December is known to be one of crypto’s hottest months, so Loopring might still surprise us before the end of the year.
The overall signal from the indicators is neutral, advising traders to hold their positions. If the price starts to move down and breaks the support at $2.171, the traders may take a short position by keeping a stop-loss at $2. On the other hand, if the price rises enough to break the resistance at $2.8799, then a target can be placed at $3.
The Fibonacci pivot at $2.52 is currently testing the price. If the price goes down, the next Fib level will be at $2.11, while the next level in the upwards direction will be at $3.03.