Loopring For more than three months, it has managed to impress and disappoint investors.
Most altcoins rallied after the recent crash to invalidate losses. However, some altcoins were unable to initiate a rally due to a lack of buying pressure.
Now, Loopring stands in the middle of these two categories. It did not witness a rebound, nor did it suffer losses.
stuck in its own loop
Despite all the volatility recorded after the June crash, LRC somehow managed to keep itself afloat. On August 3, it was trading at $0.41 at press time. Admittedly, this is a low for trading altcoins.
The first signal for LRC to break out of these lows will come when it will manage to close above the $0.45 mark, which it has now tried and failed several times.
But Loopring may be able to get out of this predicament, thanks to the support of its investors. Surprisingly, in the case of Loopring, investors achieved the rare feat of not selling and exiting the market after the altcoin fell to its lows.
Instead, these holders continued to hold their LRC, and as a result, their dominance began to soar.
Just one month after the crash, Cruiser’s (mid-term holders) number rose from 51k to 67k. As a result, their dominance increased from 36% to 45%.
Responsible for holding nearly 80% of the entire LRC supply, this group of people is critical to preventing the downfall of Loopring. Now, the only hope is that their patience is not exhausted by the price consolidation.
For now, price indicators do point to a possible rally as long as the altcoin isn’t battered by bearish cues from the broader market.
At press time, the Average Directional Index (ADX) is approaching the 25.0 threshold, crossing which would be a sign of a strengthening active trend.
Due to the current upward trend, Loopring is safe. And, after a week of price declines, the same is expected for the next few days. (Refer to the price chart of Loopring Protocol).
Also, once the Relative Strength Index (RSI) can sustain the bullish zone above the neutral line, the LRC will be able to rally forward.