LooksRare Price Strategy: Profit potential at 31%

Saif Naqvi
Source: Pixabay

LooksRare’s price is set to rebound after testing a key support trendline. An ideal buy opportunity at $4.58 can evolve into a 31% profit if the rebound plays out as expected. On the other hand, those betting against the market should wait for a close below $4. At the time of writing, LOOKS traded at $4.6, down by 13% over the last 24 hours.

LooksRare 4-hour Time Frame

Source: TradingView

Three distinct higher highs and higher lows since 24 January outlined an ascending channel on the lesser timeframe. A close look at the chart showed that LOOKS was challenging the baseline of its pattern after a 20% decline from $5.78 to $4.58. The price was currently testing the confluence of the 38.2% Fibonacci level and 4-hour 50-SMA (yellow) at the lower trendline. The region was also significant on the hourly timeframe as it clashed with the 200-SMA (not shown). A successful rebound from this support trifecta would set a new higher high in motion.

Trade Setups

An ideal buy placed at $4.54 can turn into a 31% profit if LOOKS advances to a fresh peak of around $6. Stop-losses must be kept at $3.8 to account for any early throwbacks. The hypothetical setup carried a risk/reward ratio of 2.57.

Meanwhile, investors can profit through shorting in case of a close below $4. Take-profits can be set at 24 January’s swing low of $3.15, marking a gain of 21% if timed right. Stop-losses can be kept at $4.2.


LooksRare’s 4-hour chart presented opportunities for both long and short trades. However, an active uptrend made longing a more attractive option. In either case, stop-losses must be well defined to safeguard investors from any deviations from these setups.