Loopring’s price has remained gridlocked within a down-channel for almost a month now as bears maintain market control. However, a good buy opportunity was just around the corner as LRC traded close to its 200-SMA (green). Rumors surrounding a partnership with GameStop would attract more attention until the price breaches a key barrier.
Loopring 4-hour time frame
Like most of the crypto market, Loopring has had a weak month of December so far. Investors have lost nearly 22% over the last 30 days after a double top at $3.8 triggered a downwards run. Considering the fact that LRC was currently trading below the 200-SMA (green), a degree of skepticism lingered in the market. This long-term moving average encompasses nearly 40 weeks of trade and usually determines the general trend for any asset.
LRC slipped below this MA on December 9 and maintained its downwards run. However, recent factors indicated that bulls were on the move. A 9% jump over the last 24 hours bumped LRC to the upper trendline and an upwards breakout was now on the cards. A crossover between the 20-SMA (red) and 50-SMA (yellow), which is considered a bullish near-term signal, would also drive investments.
Indicators
LRC’s 4-hour RSI was finally trading above 60 for the first time in two weeks. Any reading above 55-60 is normally considered a healthy sign. The Awesome Oscillator, which tracks market momentum, also traded above its half-line since 11 December. While these signs were ominous of an extended bull run, LRC was yet to flip a key barrier.
When to buy
Observers must wait for LRC to flip its 200-SMA (green) and upper trendline at the 38.2% Fibonacci level ($2.46) before placing any entries. Should this breakout fail to materialize, traders can go long once a new low is hit at $1.6 or $1.8.
Conclusion
Those who are late on the current bull run must stave off till LRC makes further developments. Once the 200-SMA (green) is flipped, LRC would be in a prime position to register another 20% rise to $3 over the coming week. Even if LRC fails to break above its 38.2% Fibonacci level, long bets can be placed once the price tags a support zone between $1.6-$1.8.