LRC/USD spiked amid positive network activity, reaching $0.63 before running into overhead resistance
Loopring (LRC) price surged to highs of $0.63 yesterday, spiking 32% on the day as bulls rallied amid a positive fundamental outlook.
At the time of writing, the LRC token has shrunk slightly against the US dollar to trade around $0.50. Bulls seem to have run into headwinds during the early Asian trading session. Overall, LRC/USD remains in the green in the daily and weekly time frames by about 20% and 140% respectively.
The potential for a new push towards $0.60 is down to the strong position the Ethereum layer-2 protocol is in at the moment.
As ETH price has increased in recent weeks, so has its user activity count and related gas fees. The huge fees have pushed some investors onto scaling solutions like Loopring.
The trading volume over the past 48 hours has doubled, rising to $5.49 million. It is this massive onboarding of users that has resulted in a positive impact on LRC price. In the short term, bulls could see significant gains if a raging bull market continues to herald high user activity on the Ethereum network.
LRC/USD technical outlook
LRC/USD daily chart. Source: TradingView
Currently, the 200% Fibonacci retracement level provides a major upside barrier at $0.517. If bulls resume the upside and break above this barrier, the next resistance level is at the 261.8% Fibonacci retracement level ($0.644). Successfully negotiating this hurdle and buy-side pressure could take LRC/USD above the 300% Fibonacci level ($0.722).
But the daily RSI is dipping from within the overbought territory to suggest bulls might be tiring. If prices fall below $0.42, initial support is at the 50% Fib level ($0.399) and 38.2% Fib level ($0.345). Beyond this, LRC price could dip to the 50-SMA support at $0.197.
Bitcoin’s majestic march to $36,000 has charmed the crypto market as most altcoins are at new multi-month or multi-year highs.
LRC aside, Ethereum is eyeing its all-time high as it rebounds above $1,100, while XLM has skyrocketed to $0.22 with a 45% upside in 24 hours. Cardano is another strong performer today with its price up nearly 30% to trade near $0.27.
ChainLink could surge to $20 in the next few days if it maintains the terrific uptrend. However, a notable exception to the bullish burst might be XRP, which continues to struggle around $0.22 since the damaging SEC lawsuit impacted investors.