The LCX price is down by 8 percent in today’s trading session. The current bearish trend comes a day after its value surged by more than 35 percent, extending a bullish trend that had also resulted in its price surging by over 10 percent on Tuesday.
Why has the LCX Price Been Surging Lately?
Since the start of the year, LCX price has surged by more than 300 percent. The current price surge has coincided with the recent industry-wide bullish trend that has seen virtually all altcoins start a strong and aggressive bullish trend. However, even with its significant correlation with the industry, which has partly contributed to the current price surge, the current 300 percent surge in value indicates that it is not the only factor driving its current bullish trend.
Data from CoinMarketcap, for instance, shows its trading volume has been surging by three digits percentage points for the past few weeks. This can even be seen in the trading volume of the past 24 hours, which has shot up by more than 120 percent. The continued surge in trading volume, in most cases, can result in cryptocurrency projects assuming an aggressive bullish trend, as seen in LCX’s recent price action.
The latest price surge and trading volume surge also point to a likely increase in traction of the project with its users. This is especially true if the current increase in trading volume is not being driven up by whales but instead by small transactions from many users.
LCX Price Forecast
As seen from the above fundamental analysis, the LCX price surge has been due to a combination of factors that have resulted in over 300 percent gain in the market. However, most of the factors described in my analysis above are mostly short-term.
Therefore, in the next few trading sessions, I expect today’s price drop to continue as the markets continue its price correction. I also expect the current bearish trend to be long-term, as factors such as a recovering industry-wide crypto market may stop having a significant impact on LCX due to its recent aggressive bullish move resulting from a surge in trading volume.
Overall, I expect the LCX price to drop below the $0.10 price level in the next few trading sessions. I also expect today’s bearish trend to persist for the next few trading sessions. A surge above $0.14, however, will invalidate my bearish analysis.