Is the LOOM Price Rally Running Out of Steam?

Sahil Mahadik
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Loom Price

Since early September, the Loom coin price has outperformed its peers in the crypto market. From the September 2nd low of $0.0374, the coin price showed a remarkable rally to the $0.2948 high, registering a total gain of 682.6%. However, the price started witnessing supply pressure around the $3 psychological level raising the question of exhausted bullish momentum.

Also Read: Odds Of Spot Bitcoin ETF Approval By US SEC Rises Above 90%: Bloomberg

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Exhausted Bullish Hints Minor Correction Ahead

  • The LOOM coin price is facing intense supply pressure at the $3 mark.
  • The potential correction could plunge the price 27.5% before hitting a significant support at $2
  • The intraday trading volume in LOOMer is $276 Million, indicating a 58% loss.

TradingView ChartSource- Tradingview

Defying the broader market uncertainty, the Loom Network coin price has shown a parabolic growth in the daily timeframe chart. While there isn’t a clear catalyst for this recent rally, the notable trading activities on the South Korean exchange platform Upbit have raised attention. 

By the press time, the LOOM price trades at $0.27, with a modest intraday gain of $0.5. However, at the $0.3 barrier, the coin price formed two long-wick rejection candles, reflecting indecisiveness among traders. These candles of uncertainty forming after a huge rally hint at the exhaustion of bullish momentum and an early sign of an upcoming correction. 

Anyhow, it is common for an asset to show some retracement after a significant recovery to recuperate the exhausted bullish momentum. This is a healthy activity that may also offer buyers to reaccumulate this crypto at a discounted price.

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Key Levels to Watch 

Amid the anticipated retracement, the Fibonacci Retracement Tool can assist traders in identifying crucial support levels that can resume the recovery trend. The first noteworthy support stands at the $0.33 mark, coinciding with the 23.6% Fibonacci level, followed by the $0.2 psychological support, which aligns with the 38.2% Fibonacci retracement. Additionally, the $0.165 level, corresponding to a 50% retracement, could serve as a crucial support level. A breach below this point might suggest a weakening of buyer momentum, thereby flagging increased risk for the coin’s bullish outlook.

  • Exponential Moving Average: the 20-and-50-day EMA could act as strong support in the retracement phase.
  • Relative Strength Index: The daily RSI slope at the overbought regain of 86% indicates a higher potential for correction.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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