- The LRC price corrected over 25% in the last three trading sessions.
- Its technicals highlight a major downtrend and show the seller dominance.
The Loopring (LRC) price trades near its crucial support zone of $0.2100, reflecting a major downturn this week.
The Loopring price was in a closed range for over one and a half months, causing a dilemma among the investors. Nonetheless, sellers gained momentum at the beginning of the month and pushed the LRC price below its key moving averages.
Notably, the price has dropped over 25% and slipped to its crucial demand zone of $0.2080 in the last three trading sessions.
The ongoing sentiment is negative, and sellers have showcased their dominance and are eyeing to breach the prompt support zone of $0.2050 to extend further correction.
At press time, the Loopring (LRC) price traded at $0.2090 with an intraday drop of 3.98%, reflecting a selloff on the charts. It has a monthly return ratio of -14.30% and 2.20% yearly, reflecting a downtrend.
The pair of LRC/BTC is at 0.00000310 BTC, and the market cap is $264 Million. Analysts are neutral and suggest that the LRC price may hold gains near the demand zone and might see a pullback soon.
Could Loopring Revert from Demand Zone? Price Action Outlook
On daily charts, Loopring token trades are in a severe downtrend, and bulls are in trouble and can’t attain any significant rebound. The sellers have the momentum, but few technical indicators suggest a possible pullback ahead.
Based on the momentum oscillator projections, the LRC token price looks oversold and might see a pullback soon.
Bulls have to surpass its primary swing hurdle of $0.5200 to back the crypto’s strength, while a drop below $0.2020 will drag LRC towards its next leg of $0.1950.
Source: Santiment
Notably, the trading volume remained flat at $27 million, and the token has a total supply value of 1.93 billion.
When writing, Loopring crypto ranks 221 per the market cap and looks oversold now. It implies a price turnaround may be possible ahead.
The ongoing trend guides a significant short-buildup activity that has happened in the past sessions, which resulted in a severe drop of over 25% this week.
Interestingly, the token has paused the selloff and tried to sustain gains near the demand zone.
Per the Sanitment feed tweet data, Loopring’s network was compromised by a hack valued at over $5M. The project’s market cap has predictably dropped as trust in the crypto community has shrunk.
➰😱 Loopring's network was compromised by a hack valued at over $5M. The project's market cap has predictably dropped as trust among the crypto community has shrunk. FUD is likely compounding the -22% $LRC 4-day drop, and there is a likely opportunity to buy into others' fear. pic.twitter.com/JAwMZyg1XS
— Santiment (@santimentfeed) June 11, 2024
Source: X
Sharp Decline in Weighted Sentiment Conveys a Negative Outlook
Due to a recent hack noted in the LRC network, the holders of LRC showed their negative sentiment and secured their gains. It resulted in a massive decline of over 478% in the weighted sentiment data overnight.
Source: Santiment
Nonetheless, the price volatility highlights massive fluctuations and displays intense sell-offs in the past trading sessions.
Amidst the negative sentiment for the token, the Loopring price is still trying to settle the gains near the demand zone for a significant recovery.
Plunge in Popularity
Following the sharp price decline, the users on the social media platforms have not shown attention to the token, and a decline in user engagement was noted.
Source: Santiment
The social dominance value dropped over 180%, while the number of Twitter followers dropped over 30%, which implies a negative outlook.
Meanwhile, the development activity data remained stable below the midline region, noted at 2.98.
The immediate support levels for the LRC token are $0.2010 and $0.1920, whereas the key upside hurdles are around $0.2180 and by $0.2380.
Conclusion
The LRC token price trades near the make-or-break zone of $0.2080 and is below its key moving averages. The ongoing price action guides the selling pressure and directs underperformance on the charts.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
