Could Loopring (LRC) Drop 40%? This Chart Says Yes

Summary:
• The Loopring Price is grappling with a significant support level, which desperately needs to hold to keep the bull market intact.

The Loopring Price is grappling with a significant support level, which desperately needs to hold to keep the bull market intact.

In November, Loopring (LRC) was one of the best performing cryptocurrencies, closing out the month with a +388% gain after being up over 500% at one stage. This morning, the LRC token is unchanged at $2.783 (+0.39%), although down around 30% over the last week. In that time, almost $1.2 billion was wiped from the project’s market capitalization. Despite this, Loopring is the 51st most-valuable cryptocurrency behind Flow.

After setting a record of $3.977 on November 10th, the price-action became highly unpredictable. Within a week, LRC was trading at $2.130 and a week after almost back at the highs. Since then, the price has reverted to a downtrend, which has forced a test of upturned support.

LRC Price Forecast

The daily chart shows the Loopring price is trading just below the trend support (now resistance) at $2.877. And in my opinion, a close below the trend for the second day running will confirm a bearish breakdown. In that event, sellers may test the resolve of the longs and push the price down towards the November 18th low (and 50% Fibo retracement) at $2.130.

Whilst the price should find good support at $2.130, there is also a chance the support fails. In that event, a steeper sell-off could target the 61.8% Fibonacci retracement, aligned with the former all-time high at $1.723.

However, if LRC closes above the trend, the builds will claim victory. And if that happens, LRC may continue north, targeting the ATH.

Loopring Price Chart (Daily)

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