Loopring (LRC): Why There’s More to Recent Rally Than Meets the Eye

The leading layer2 zkRollup network’s native coin, LRC, saw improved performance in the past 24 hours. LunarCrush, a crypto social analytics site, stated that Loopring’s price surged a staggering 52%. November 4 intraday session saw the alternative token trading around the $0.41 high.

The data added that LRC’s social mentions and engagements explored daily peaks of 2,340 and 7.86 million, respectively. That was substantially beyond their respective 30d averages. The alternative token maintained rallies during this publication.

Coinmarketcap data shows LRC price gained 16% within the past 24 hours. Moreover, Loopring saw a 371% surge in trading volume over that timeframe. Surprisingly, the asset’s improved social activity, the volume traded and price increase over the past day emerged after Loopring declared suffering a DDoS (distributed denial of service) attack.

Meanwhile, the layer2 scaling site revealed that developers resolved the issue, and users can access the network without worries.

The Stats

Loopring registered its highest 24hr volume traded over the last six months on November 4, hitting $728.84 million (Santiment data). The sudden LRC price surge sent the alternative token to the overbought conditions.

While publishing this news, its RSI (Relative Strength Index) read 71, whereas its MFI (Money Flow Index) stood at 87. Buyers hardly support continued price surges at overbought peaks. Thus, market players can expect impending price reversals.

Also, the daily chart showed the token’s CMF (Chaikin Money Flow) had its dynamic line on a downtrend during this publication, swaying beneath the central line at -0.08. Considering LRC price growth within the past day, CMF formed a divergence, presenting a price sign. Thus, it remained visible that sellers readied to dominate the marketplace.

Finally, assessing the chain confirmed an uptick in Loopring’s exchange supply within the past 24 hours, with the index increasing by 0.28%. That showed market participants capitalized on the price surge to distribute LRC holdings. Therefore, the near-term sell pressure uptick preceded price reversals.

Surprisingly, LRC’s latest rally could not put most users in profit as the alternative token suffered extended declines within the last few months. Its MVRV Ration showed that investors selling at current prices would suffer losses.