Loopring Price Analysis: Can LRC Bulls Leverage From This Bear Trap?
After its second rejection from this level All-Time High $3.82, the LRC price action formed a double bottom pattern in the daily time frame chart. However, on December 4th, the token warned about intense demand pressure below the $2.17 neckline the lower rejection in the daily candle, which eventually led to a fakeout.
Key technical points:
- The 20 EMA dynamic support is flipped to a potential resistance
- The daily RSI line shows a steady downtrend, approaching the oversold territory
- The intraday trading volume in the LRC token is $1.05 Billion, indicating a 184% gain.
Source- LRC/USD chart by Tradingview
The LRC token displayed a remarkable rally in November, which made a New All-Time High of $3.82. Later the token price entered a minor retracement phase, indicating this level as a possible resistance level.
The LRC price managed to bounce back from this 0.5 Fibonacci retracement in order to continue the bull rally. However, the price could never exceed $3.82, triggering another bearish reversal. Furthermore, this whole price structure revealed a double bottom pattern in the technical chart indicating an excellent opportunity for crypto traders.
The crucial EMAs(20, 50, 100, and 200) maintain a bullish alignment for this token. Furthermore, the 20 EMA line, which provided dynamic support to the price, has turned to possible resistance with the recent pullback.
The Relative Strength Index(52) indicates a strong selling within this token, displaying steady approaching the oversold zone.
LRC/USD 4-hour Time Frame Chart
Source- LRC/USD chart by Tradingview
On December 5th, the LRC price breached the $2.1 neckline of this bearish pattern with a daily candle closing below it. However, the price couldn’t sustain this lower level, and giving a bullish engulfing candle of 20% gain on the next day, the price jumped above this neckline, indicating a fakeout.
As for now, the price is trying to retest its nearest resistance level of $2.66. If the coin managed to reclaim this overhead, the long trader would have an extra edge for their long position.
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