Loopring has become one of the most promising cryptocurrency projects today. In fact, it was one of those coins that gained more than 10x in early November 2021, going from $0.4 to a record high of $3.86. However, since December 2021, the performance has been somewhat mediocre.
With Bitcoin down nearly 50% against its own ATH, nearly 75% of LRC’s market cap has been wiped out. However, it looks like it’s finally bottomed out and it could be a very attractive option as the broader crypto market begins to recover.
LRC/USDT | Source: TradingView
If you take a close look at LRC’s technical structure, you can clearly see that the price broke strongly from a bearish triangle pattern a few days ago and attempted to break the immediate USD 1.2 resistance level. Despite not being able to do so, the technical structure still remains very optimistic and any breakout above $1.2 would result in a minimum 50% rally to around $1.8.
In addition, the RSI indicator sees rising momentum, as indicated by the yellow line.
So overall it could spend a little more time in the accumulation zone as the broader market picks up steam and recovers shortly after.
In addition to technical indications, on-chain stats also suggest that positivity is on the rise. The total number of addresses with LRC has managed to stay high despite the two-month bearishness. This clearly suggests that despite the weak price action, people’s belief in this project is still at an all-time high.
Total number of addresses | Source: Glassnode
There is, however, another worrisome measure attached to this.
The supply of the top 1% of addresses with LRC has fallen by price in the past two months. This can mean two things, depending on the situation. The first, more troubling, is the fact that bigger players have cashed out at the peak of the rally.
But the second conclusion from this suggests that more retail players have bought into the dip, leaving the number of addresses holding this coin despite the correction to its ATH.
Supply in the hands of the top 1% of addresses | Source: Glassnode
Back to good news, LRC’s MVRV-Z score is just inches from breaking into positive territory, suggesting that a price recovery from this point could bring it back to a properly valued position.
This gives people a unique opportunity to buy at a lower valuation in the coin before the price regains its old status.
MVRV-Z Score | Source: Santiment
Social dominance has also been on the rise lately, especially as the recovery is starting to brew in the market. Between February 4 and 5, when the price of LRC surged nearly 50% from $0.8 to $1.2, Santiment’s social media dominance data also predicted a big surge.
Social dominance | Source: Santiment
Despite some headwinds from broader market sentiment and sell-offs by the top 1% of LRC holdings, it appears that the currency is well on track to recover. And investors could potentially see 50-100% rallies in the coin.
This post Ready for a breakout, a 50%-100% rally is possible for LRC
was published first on https://ambcrypto.com/poised-for-a-breakout-is-a-50-100-rally-possible-for-lrc/
