Loopring (LRC) has fallen significantly from its all-time high. However, the price has recovered from the previous all-time high and could start a short-term rally.

Sharp fall from ATH

LRC has been falling since November 10th when it hit an all-time high of $3.85. So far, the price is down 77.51%.

Despite the significant drop, the token bounced off the $0.80 region. This is an important level as it previously acted as resistance at the all-time high and is now expected to act as support.

Therefore, as long as the LRC does not break below, there remains significant upside potential.

Weekly LRC/USDT chart | Source: TradingView

Will a bounce follow?

Technical indicators are currently showing oversold conditions. This is particularly evident in the daily RSI, which fell to a new all-time low of 19 on Jan. 22. Readings below 30 are considered oversold, indicating a possible trend reversal.

The RSI has since risen and currently stands at 28.

If the rally continues, the next resistance lies at $187. This is the 0.382 Fib retracement level and horizontal resistance area.

LRC/USDT daily chart | Source: TradingView

LRC/BTC

The LRC/BTC pair shows interesting similarities to its USD pair.

First, the pair is down 62% from its all-time high.

Second, the decline serves to confirm the 2400 Satoshis zone as support. Although this zone did not behave like the previous all-time high, it acted as resistance over the 1190-day period. Therefore, it will now act as a support.

If a bounce occurs, the next resistance is at 3700 satoshis. This is the 0.382 Fib retracement resistance

.

Weekly LRC/BTC chart | Source: TradingView

You can see the LRC prices here.

Join Bitcoin Magazine Telegram to follow news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to beincrypto