Loom Network price went parabolic on Monday as demand for the coin jumped. The token rose by over 250% from the lowest level during the weekend. It was trading at $0.1463, which was the highest level since February 2022, giving it a market cap of over $123 million.
What is Loom Network and why is it rising?
Loom Network is a relatively small blockchain project that seeks to solve some of the challenges that developers face. It is a multichain interoperability platform that is connected to other popular blockchains like Tron, Ethereum, and BNB Smart Chain.
As a result, developers can build applications in Loom Network and then deploy them automatically to these chains. By so doing, developers get access to a platform that has no gas fees for their users. It is also significantly fast, with less than three second-confirmation time.
Loom has been around for more than five years. It was launched in 2017 after the developers raised over $45.81 million in an initial coin offering (ICO).
LOOM, which is based on Ethereum’s network, is a token and not a coin. It is the native token for the ecosystem that is used for governance purposes.
It is unclear why the Loom Network price has made a strong bullish comeback recently. A possible reason is that the number of new addresses in the network has been growing. The number of new addresses rose to 37, which was the highest level in months. Similarly, the number of wallet addresses has risen to over 42k while the number of transactions has risen.
Loom Network price prediction
The daily chart shows that LOOM price has been in a strong bullish trend in the past few days. As it rose, the coin rose above the important resistance level at $0.074, which was the highest level since July this year.
LOOM moved above the 25-day and 50-day moving averages while the awesome oscillator has moved above the neutral point. Volume has also risen sharply recently. Still, the coin will likely resume the downward trend as buyers start taking profits. If this happens, the next key support will be at $0.074.