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LRC gains 20% in the past 24 hours and might climb past this level soon

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LRC gains 20% in the past 24 hours and might climb past a strong resistance level soon
Source: Pixabay

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Loopring stood ranked #76 on CoinMarketCap with a market capitalization of $1.3 billion, at the time of writing. Like many altcoins, Loopring faced heavy selling pressure in late November and all of December as it plummeted from $3.85 highs. At press time, the crypto was knocking on the $1 resistance level following a pullback from $1.2 a couple of weeks prior to the time of writing. It looked likely that LRC would break past the $1 level soon and register further gains.

LRC gains 20% in the past 24 hours and might climb past a strong resistance level soon

Source: LRC/USDT on TradingView

A set of Fibonacci retracement lines were drawn based on LRC’s move from $0.64 to $1.2 a couple of weeks ago. These retracement levels showed that the pullback from $1.2 had dipped beneath the 61.8% level briefly. Demand was seen soon thereafter, and the past few days have seen LRC post strong gains once again.

The near-term market structure was bullish and the price was strongly leaning bullish on the lower timeframes. The deep pullback from $1.2 to beneath $0.86 established some areas of significance for LRC in the lower timeframes.

The $0.92 level and the $1-$1.05 levels had acted as levels of strong support and resistance for the price on its way down.

The Volume Profile Visible Range also agreed- it marked the $0.86 and $1 areas as places where a significant volume of trading occurred in the past two weeks. Thus, marking them as areas where supply and demand can be found. The VPVR also showed that the Point of Control (POC) lay at $0.96, which could be retested as support before another move upward in the next few hours.

Rationale

LRC gains 20% in the past 24 hours and might climb past a strong resistance level soon

Source: LRC/USDT on TradingView

On the hourly chart, the RSI was well into the overbought territory, while the Stochastic RSI made a bearish crossover at the overbought territory and was headed downward. The $0.96 POC and the $0.92 support level could be tested before a move higher in the next few hours.

The OBV was also climbing after the pullback from $1.2, which showed the presence of demand behind the rise from $0.85.

Conclusion

Bitcoin had moved past the $40.6k level. In fact, in the next few days, it could climb higher, with $44.4k and $48k being levels to watch out for. Such a move for BTC in the coming days will drag the altcoin market higher. And, LRC will be positively affected as well.

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Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.