In February 2021, Loopring traded below the $0.87 resistance level, and by July 2021, the price had fallen to $0.17. Later, in November, Loopring grew to $3.6 and in the months since, the price has fallen sharply. This long time horizon gives us some context as to the importance the $0.8-$0.9 area has had in the past. At the time of writing, LRC again knocked at the USD 0.87 support level. The short-term bias for the currency appeared to be bearish.
Using the swing high and swing low at $1.1 and $0.878, a series of Fibonacci retracement levels (yellow) was plotted. Earlier this week, the 50% retracement level at $0.99 acted as a resistance and the price was rejected from $0.99. For a short time, the $0.93 (red box) area acted as a demand zone, but the bulls in this area were quickly depleted.
The price then tested this area again from below to confirm the switch to a supply zone. This suggested that even on a new test, the $0.92-$0.93 area would likely still be dominated by sell orders.
A bullish scenario would be a weekend move above $0.93 for LRC, but this was unlikely as there was no real demand. The most likely scenario for LRC in the coming days was a decline towards the USD 0.81 support level. This level was also the 27.2% Fibonacci extension level.
The RSI timidly poked its head above the neutral 50 lines, while the Awesome Oscillator was also about to climb above the zero line. This indicated that bearish momentum had stalled, at least temporarily.
However, the CDV showed that the sales volume has remained stable in recent days. The jump from the $0.86 area in the past few hours had no notable buying volume.
The market structure has been bearish and in recent days it has been confirmed that the $0.93 area is a supply area. Due to the lack of demand for LRC lately, a move further south to $0.81 could take place in the coming days.
Disclaimer: The findings of this analysis are the authors’ sole opinions and should not be considered investment advice
This post Loopring could suffer further losses as sellers were too strong at a crucial moment
was published first on https://ambcrypto.com/loopring-could-see-further-losses-as-sellers-were-too-strong-at-a-crucial-juncture/