After a brief price rebound in the opening days of 2022, Loopring (LRC) has quickly lost value. The token suffered a heavy sell-off in 24-hour trading, dropping nearly 18% in value. Those losses erased the bullish momentum noted last week and pushed the seven-day decline to roughly 16%. Is Loopring (LRC) still a viable investment? Here are the key takeaways:
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Loopring (LRC) showed strong bullish momentum several weeks ago after emerging as one of the early adopters of ZK-rollups.
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Hawkish signals from the Federal Reserve, reflected in the recently released FOMC minutes, appear to have added downward pressure on LRC.
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The current correction looks likely to continue, as a range of indicators point to a bearish outlook in the near term.
Data source: TradingView.com
Loopring (LRC) — analysis and price outlook
The crypto market opened the day broadly lower in response to the FOMC messaging, which reinforced the Fed’s hawkish monetary stance. While LRC’s decline is partly a reflection of wider crypto market sentiment, several indicators suggest the token may be heading for further losses.
At the time of writing, LRC traded around $1.68, down nearly 18% on the day. Immediate support sits near $1.60; if LRC fails to hold above that level, the token could slip back toward $1.00 within days. Given current momentum, a sustained downtrend toward the $1.00 area appears plausible.
Why consider buying Loopring (LRC)
Despite the ongoing correction, Loopring (LRC) still offers reasons for a longer-term investor to remain interested. The project was an early implementer of ZK-rollups, a layer-2 scaling solution that can significantly boost transaction throughput and reduce fees. That technological edge supports a constructive long-term case.
However, patience is advised: waiting for the present downtrend to push LRC nearer to $1.00 could provide a more attractive entry point for investors focused on long-term gains.