Loopring’s LRC pumps 26% amid rising Ethereum L2 adoption

loopring lrc soars 30% in a day
“Loopring’s LRC pumps 26% amid rising Ethereum L2 adoption” Image via Loopring Medium page

Key Loopring Takeaways

  • After retesting oversold levels, Loopring’s native blockchain asset is on a tear.
  • The LRCUSDT pair started the week by posting 26% intraday gains.
  • RSI trend history points at a continuation of the rally.

PILANI (CoinChapter.com) – Loopring’s LRC token surged nearly 30% as the zkRollup layer 2 platform became the de-facto alternative for significantly cheap Ethereum transactions. As a result, the LRCUSDT pair soared from $2.55 to $3.48 on Monday. Rising adoption paved the way for increased long bids and a rally with the potential to reclaim the previous all-time high.

Bullish traders propelled LRC by 40% on November 10th, leading the token to top at $3.86. But a 2-week long bearish phase followed post the euphoria. LRC/USDT kept printing lower lows as all recovery attempts were suppressed by bears. Finally, however, the trend formed a Descending Channel setup with LRC prices breaking out after locally bottoming at $2.17 on Friday.

Related: Loopring pumps 40% as LRC demand soars amid rising Ethereum gas fees

Billion Dollar Trades, No Gas Fees

Gas fees on Ethereum have risen exponentially since June 2021, triggering an exodus amongst users to layer two protocols and layer one alternatives like Solana, Avalanche, etc. As a result, NFT transactions on the largest smart contract blockchain especially have become expensive.

Loopring recently experienced an explosive surge in demand due to drop dead costs to process transactions. In the latest update, the team even claimed to have facilitated trades worth billions of dollars with no gas fees.

Key advocates anticipated Loopring to support trillions in trades soon by assessing the platform’s explosive adoption rate.

“only took a few weeks to go from $2B —> $3B wen $1 Trillion?”

commented byron.loopring

Moreover, the open-source, audited, and non-custodial exchange protocol’s supposed partnership with GameStop also fuelled the rising bullish sentiment.

“GameStop and Loopring are going to revolutionize art, gaming, ethereum, decentralized finance The big players are worried.”

said Twitter-based crypto market participant Gregtoshi Nakamoto

“#loopring NFT Approve and Deposit Github commit post. This is huge. All but confirms Gamestop NFT marketplace. $LRC is going to be a $30 token very soon.”

posted Crypto_Quest

LRC/USDT Technical Setup

When Loopring’s underlying token checked the oversold relative strength index (RSI) box, LRC posted a big upside move. With the latest rally, the layer 2 token recreated a similar scenario that might trigger a massive upside for the LRC/USDT pair.

In detail, RSI tapped 30 during October end. LRC went on to surge by more than 100% to its all-time at $3.86. The token’s RSI retested the lower bound last weekend and has been on an uptrend since then. As a result, the opposing RSI and price trends created a bullish divergence.

Loopring's LRC looks to push above $4
Loopring’s LRC looks to push above $4. Source: TradingView.com

Bullish divergences in technical setups occur when asset prices fall to new lows while all other indicators point to a bullish breakout. In this case, rising RSI against falling LRC prices demonstrated that bears are losing power. And that bulls are ready to take over again.
Traders and analysts too corroborated the same.

“What is Loopring and why does it look like it’s going to make new ATHs like the other hyped shitcoins before it”

said Twitter-based crypto trader Loma

Buyers are now looking to reclaim the previous high. A close above $4 would pave the way for LRC’s upside target at $6.2.

“$LRC here is the USD fractal locally. It fits with the major fractal from 2017 I posted 2 weeks ago (!). $6-7 by end of this week!”

asserted trader El Baranito

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