Looping (LRC) After the price rejected the all-time high (ATH) at $3.82 for the second time, price action formed a double bottom pattern on the daily timeline chart. However, on December 4, the token warned of massive demand pressure below the $2.17 neckline, which eventually led to a fake exit.
Important Technical Points
- The dynamic support of the 20 EMA has been turned into a potential resistance.
- The daily RSI line shows a steady downtrend approaching the oversold zone.
- The intraday trading volume of the LRC token is around $1.05 Billion, which is an increase of 184%.
LRC token It had a remarkable rally in November, which brought it to an all-time high of $3.82. The token price then entered a minor retracement phase, marking this level as a possible resistance level.
LRC price managed to bounce back from this 0.5 Fibonacci retracement to continue its “bullish rally”. However, if the price fails to break above $3.82, that would trigger another downtrend. Also, all this price structure has revealed a double bottom pattern on the technical chart, which indicates an excellent opportunity for crypto traders.
The key EMAs (20, 50, 100, and 200) remain bullish for this token. In addition, the 20 EMA lines, which provide dynamic support to the price, have turned into possible resistance with the recent pullback.
The Relative Strength Index (52) shows strong selling in this token and is steadily approaching the oversold territory.
LRC/USD 4-hour Timeframe Chart
On December 5, LRC price broke the $2.1 neckline of this bearish pattern and closed a daily candlestick below it. However, the price failed to sustain this low and showed a 20% bullish candle the next day, indicating a false exit with the price breaking above this neckline.
For now, the price is attempting to retest the nearest resistance level at $2.66. If the coin manages to recoup this overhead, the long trader will have an extra advantage for their long position.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.