The Loopring price has been in a spectacular sell-off in the past few months as the crypto sell-off accelerated. The LRC token has dropped to $0.515, which was the lowest level since November last year. It has crashed by more than 87% from its highest level in 2021. Other layer 2 cryptocurrencies like Polygon and Immutable X have also retreated.
Loopring is a layer-2 trading blockchain project that has been around since 2017. The network’s goal is to create a platform where people can buy and sell digital coins at a significantly lower fee. It solves one of the biggest challenges in Ethereum decentralized exchanges (DEXes) like Uniswap. Trades in the ecosystem are also executed at a relatively faster rate.
Loopring price is falling as the centralized and decentralized exchanges continue struggling. A good example of this is Coinbase, which saw its total volume plummet in the first quarter. It even moved to the loss-making category as its total losses jumped to over $400 million. The number of active transacting customers also fell sharply as the prices of digital coins fell.
Therefore, investors believe that Loopring has also seen such outflows in the past few months. So, what next for the LRC price?
On the daily chart, we see that the LRC price has been in a strong sell-off in the past few months. Now, the coin has managed to move below the important support level at $0.6368, which was the lowest level in March. Notably, it has also formed an inverted cup and handle pattern, which is a bearish sign. The coin is also below the descending trendline that is shown in green.
Therefore, I suspect that the Loopring price will continue falling now that it has moved below the support at $0.63. The next level to watch will be at $0.3745, which was the lowest level on October 28. The stop for this view will be a move above $0.63.
This post was last modified on May 11, 2022, 12:05 BST 12:05