Loopring (LRC), a scaling solution that leverages its technology on the second layer of Ethereum (ETH), is one of the altcoins experiencing notable gains, in line with the prevailing bullish sentiment in the crypto market. Analysts are optimistic about the potential for continued upward momentum in LRC, supported by key technical indicators.
Particularly, in a TradingView post on December 10, crypto analyst AlanSantana underscored that Loopring is poised for a possible bullish explosion, potentially propelling the token to a 500% rally.
According to the analysis, optimism surrounds Loopring’s current momentum, highlighting a gradual build-up that lays the groundwork for a substantial upward movement. In this context, Loopring’s positive outlook extends across various time intervals, with the next target price likely to rise to $0.32, $0.43, and $0.53.
“Loopring is just building momentum (slowly growing) in order to take off. All the potential is still intact. It looks good on all timeframes: short, mid and long-term. The bottom is already in, so we will experience long-term growth, higher highs and higher lows,” he said.
In the backdrop of this, the analyst pointed out that Loopring has a historical tendency to move swiftly and strongly, noting that while consolidation phases may endure for months, breakout scenarios can yield 100% gains even in a single day.
Contrasting this with a previous analysis on November 3, the expert highlighted Loopring’s strong ascent since October 19, supported by a super high Relative Strength Index (RSI). Despite the robust RSI, the price was marginally above the early November 2022 low.
The analyst interpreted this as a positive sign, suggesting that the growth potential is still intact and there is a prevailing bullish bias in the market.
AlanSantana also explored the significance of trading volume, noting that recent spikes were above the average volume observed in the past seven months.
“Lately, the trading volume has been 3, 4, 5 times above the average in the past 7 months, telling us clearly that behind the scenes the bulls, smart money and emotionally well-balanced people are already buying up. What follows is a bullish wave, no surprise, with a target of 500% or more,” he added.
It is essential to highlight that, despite the robust technical indicators, the Loopring ecosystem strategically emphasizes partnerships and effective network utilization to drive future price growth.
Loopring’s existing partnership with video game retailer GameStop (NYSE: GME) is a noteworthy example of this strategy. This collaboration involves Loopring providing the necessary infrastructure to facilitate NFT transactions within the GameStop ecosystem.
At the same time, Loopring relies on its underlying technology, enabling off-chain transaction settlement. This approach is designed to deliver faster and more cost-effective transactions than competitors, such as Ethereum, that require high gas fees.
By press time, LRC was trading at $0.26 with daily losses of about 1.5%, while on the weekly chart, the token was up almost 17%.
Under technical analysis, Loopring is marked by bullish sentiments, with a summary of one-day gauges retrieved from TradingView indicating a ‘buy’ at 15, while moving averages strongly support a ‘strong buy’ at 13. Oscillators are currently marked as ‘neutral’ at 7.
Considering these factors, it is worth noting that the prospects of LRC heavily depend on the market’s overall trajectory.