Loopring price has continued its bearish momentum as cryptocurrencies recoil. The LRC token is trading at $0.3631, which is slightly above the year-to-date low of $0.3234. This price is about 90% below its highest point in 2021. As a result, its total market cap has crashed to just $457 million.
Loopring is a well-known layer-2 scaling blockchain project that has been around in the past two years. Its goal is to simplify how people buy, sell, and swap cryptocurrencies. As a layer 2 platform, Loopring ensures that transactions are implemented in a significantly cheaper manner. Loopring has also introduced investment solutions that uses automated market maker (AMM) tools.
Loopring price has dropped as the volume of cryptocurrencies traded on a daily basis drop. Most people who invested and traded cryptocurrencies in 2021 have simply moved away from the sector.
Most recently, Loopring entered the non-fungible token (NFT) industry. Through its platform, one can easily mint and trade NFTs at a faster and cheaper maner. Its NFT platform has become well-known for powering GameStop’s NFT marketplace.
In a tweet this week, GameStop announced that it had launched the beta version of its marketplace. Shortly after launch, the marketplace transacted over $3 million of NFTs. Therefore, analysts believe that more companies will use its technology to power their NFTs.
The daily chart shows that the LRC price has been in a strong bearish trend in the past few months. As it dropped, the coin found substantial support at $0.3234. It has struggled to move below this price several times this year. The shares remain below the 25-day and 50-day moving averages while the Average True Range (ATR) has pulled back.
Therefore, the pair will likely have a bearish breakout in the near term. If this happens, the next key support level to watch will be at $0.25, which is about 25% below the current level. A move above the resistance point at $0.50 will invalidate the bearish view.
This post was last modified on Jul 14, 2022, 09:22 BST 09:22