The Loopring price Jumped on Tuesday as Bitcoin’s bounce encouraged altcoin investors to dip their toes into beaten-down assets.
After spending a week consolidating at the $2.00 psychological support, Loopring (LRC) finally made its move. The LRC token pumped from $1.959 to an intraday high of $2.463 on Tuesday but fell short of recovering the $2.500 barrier and the 50-Day Moving Average. Subsequently, on Wednesday, Loopring has pulled back around -3% to $2.333 in Asian trading hours. Nonetheless, the spike has helped LRC to a 7-day gain of +8.50. Furthermore, Loopring’s market cap is back above $3 billion, ranking it the 50th most valuable cryptocurrency behind EOS.
The crypto market as a whole gained around $90 billion on Tuesday, primarily due to Bitcoin’s recovery to $49,300. The market leader’s performance has calmed investors’ nerves and revived hopes of a year-end ‘Santa rally’. However, the real test for BTC comes at $53k, which, if crossed, could trigger an exaggerated short-covering rally and the return of a bull market. In that event, the Loopring price could go much higher. For now, it’s too early to say if the recovery has legs or will attract selling like previous bounces in the last two weeks.
The daily chart shows that after clearing $2.00 for the first time in November, the Loopring price has never finished the day below it, suggesting buyers are accumulating around that level. Therefore, $2.00 is a significant support level and the basis for a bullish outlook.
Above the market, the 50-Day Moving Average at $2.438 is the first notable resistance level. Successful clearance of the indicator brings the December 8th high of $3.00 into focus. In contrast, Loopring could overshoot towards $3.50 if BTC continues higher.
The improving technical backdrop is constructive. Therefore, I am bullish on Loopring in the near term, with a $3.00 price target. However, a daily close below $2.00 invalidates the optimistic outlook.
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