Loopring (LRC) Weakness Persists As It Moves Below $1.00
Loopring has recently managed to settle below the psychologically important $1.00 level and is testing the support at $0.95 amid crypto market sell-off.
Three Catalysts Behind the Recent Weakness
There are three main catalysts that triggered the recent downside move, which pushed LRC from $1.50 to $0.95.
From a technical point of view, LRC gained strong downside momentum after it managed to settle below the support level at 1.37.
Rumors about a potential GameStop partnership have not materialized. In addition, GameStop stock fell out of favor and declined from the $250 level in November 2021 (when the rumors have first emerged) to the $100 level as the popularity of meme stock declined.
The current crypto market sell-off, which was triggered by a global move out of riskier assets, served as an additional negative catalyst that pushed LRC below the $1.00 level.
LRC Is Oversold
LRC is currently testing the support level at $0.95. RSI is in the oversold territory and is moving closer to the extremely oversold territory, but there is some room to gain additional downside momentum in case the current crypto market sell-off continues.
In case LRC declines below $0.95, it will head towards the next support at $0.80. A move below this level will push LRC towards the support at $0.75. If LRC manages to settle below the support at $0.75, it will head towards the next support level at $0.65.
On the upside, the nearest resistance level for LRC is located at $1.07. A successful test of this level will push LRC towards the resistance at $1.17. In case LRC manages to settle above this level, it will head towards the next resistance level at $1.37.
Taking a look at H1 chart, we can see that RSI has recently moved away from the extremely oversold territory, but LRC may still need to go through a period of consolidation to have a chance to get below the support level at $0.95.