Should I buy Loopring(LRC) after surging more than 90%?

• The Loopring price spiked more than 90% over the last 24 hours.

• The LRC: USD opened at about $0.600 before rallying to trade at $1.175 as of this writing.

Its market cap has now crossed the $1.32 billion mark.

On Monday, Loopring (LRC:USD) rallied more than 90% after the Office of the Comptroller of the Currency (OCC) granted Anchorage first-ever federal charter approval for a crypto bank in the US.

Loopring is an open protocol based on the ethereum network designed for the creation of decentralised cryptocurrency exchanges.

The federal approval of Anchorage is seen as a significant development for decentralised finance, which could benefit platforms like Loopring.

Is it time to bet on LRC?

From an investment perspective, LRC has been one of the most resilient tokens since its launch in 2017. After enduring its toughest period between 2019 and 2020, it has recovered to set a new three-year high of $1.175, pushing its market cap well above $1.32 billion.

LRC made a bullish breakout Friday last week before surging over the weekend to close at about $0.600 on Sunday. Monday’s spike makes LRC one of the largest ethereum-based protocols in the DeFi space.

With Loopring token pullings back slightly to settle at about $1.0281 after spiking to overbought conditions on Monday, investors could target potential rebound profits at about $1.175. 

On the other hand, if the profit-takers swoop in, the LRC token could pull back to find support at about $0.8922, or lower at $0.7493.

In summary, given the sharp spike in LRC and the obvious bullish bias in the market, Loopring could bounce back from Monday’s late pullback to retest its new 3-year highs.