Loopring (LRC) Moves to New Lows As Traders Lose Patience Waiting for Catalysts
Loopring gained strong downside momentum and moved towards the $1.20 level as traders continued to sell LRC despite recent rumors about a potential deal with GameStop.
GameStop-Loopring Rumors Have Not Yet Materialized
LRC enjoyed a remarkable rally back in early November amid rumors of a potential partnership with GameStop. GameStop has reportedly launched a division which will develop an NFT marketplace, but no information about Loopring’s potential role has emerged.
It looks that traders are losing patience and are not ready to wait for catalysts. LRC, which touched highs near $4.15 in November, has firmly settled below $1.50 and is moving towards the $1.00 level.
The recent increase in Treasury yields and the general pullback in crypto markets served as additional bearish catalysts for LRC as traders moved funds out of riskier assets.
Loopring bulls should watch Bitcoin dynamics closely, as a successful test of the current support level at $42,600 could push Bitcoin towards the psychologically important $40,000 level, which may lead to a strong sell-off in crypto markets.
LRC Moves Towards the Support Level at $1.17
LRC managed to settle below the support at $1.37 and is moving towards the next support level at $1.17. RSI has just entered into the oversold territory, but there is some room to gain additional downside momentum in case the right catalysts emerge.
If LRC declines below the support at $1.17, it will head towards the next support level at $1.07. A move below this level will push LRC towards the support at $0.95.
On the upside, the previous support at $1.37 will serve as the first material resistance level for LRC. If LRC manages to settle back above this level, it will head towards the resistance at $1.44. A successful test of the resistance at $1.44 will open the way to the test of the next resistance at $1.50.
Taking a look at H1 chart, we can see that RSI is very close to the extremely overbought territory, so LRC may need to go through a period of consolidation before it could gain additional downside momentum.
This article was originally posted on FX Empire
