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LRC Technical Analysis: Declining Breakout Rally Plans A Reversal

cryptoknowmics.com 05 July 2022 13:09, UTC
Reading time: ~2 m

LRC price shows a channel breakout rally struggling to surpass the new resistance trendline. Will buyers exceed this trendline with a fresh reversal? Key technical points:

  • The LRC market price has jumped by 10% in the last 24 hours.
  • The reversal rally the breakout of the resistance trendline
  • The 24-hour trading volume of Loopring is $98 Million, indicating a rise of 154%.

Past Performance of LRC

The Bullish breakout rally of the bearish expanding channel struggles to push the LRC prices about the 50-day SMA. The declining prices led to a new resistance trendline accounting for a 40% drop in market value over the last month. However, the bullish reversal from $0.36 breaches the resistance trendline and challenges the 50-Day SMA. TradingView Chart Source- Tradingview

LRC Technical Analysis 

LRC price action shows a rise in trading volume, supporting the bullish reversal and helping form a double bottom pattern at $0.34. However, the higher price rejection in the daily candle from the neckline at $0.44 warns of a bearish retracement. After sabotaging the previous bearish crossover, the MACD indicator shows a bullish alignment in the fast and slow lines. Moreover, the resurging MACD histograms display an increase in buying pressure. The RSI indicator showcases a bullish reversal in the nearly oversold zone resulting in a jump over the 14-day average line to reach the halfway line. Hence the indicator showcases a remarkable growth in the underlying bullishness, adding points to the breakout possibility. Hence the technical indicators maintain a bullish point of view, but the long wick formation shows a potential reversal. In a nutshell, the LRC price analysis showcases a potential breakout possibility to overrun the 50-day SMA.

Upcoming Trend

If the buying pressure grows over the day, the LRC prices will surpass the 50-day SMA with a breakout rally. Hence traders can expect the breakout rally to reach the overhead resistance at the $0.57 mark. Resistance Levels: $0.50 and $0.57 Support Levels: $0.40 and $0.34

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