Loopring Price Forecast Following Koinly Partnership

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Loopring price is up by more than a percentage point, continuing the bullish trend of the past two trading sessions. However, Loopring is still in a long-term bearish trend that has caused it to lose 90% of its value in 2022.

Loopring Fundamental and Technical analysis

In 2022, Loopring saw a drop in total value locked (TVL) as liquidity left decentralized finance (DeFi) protocols and TVL overall decreased. Loopring, which is built primarily for decentralized exchanges (DEXs), saw a 86% drop in TVL over the year, according to data from DefiLlama. Despite this, Loopring has maintained a 1.89% market share of the layer 2 ecosystem and currently has the largest TVL among L2 protocols, according to L2Beat.

Currently, Loopring’s token (LRC) is being traded at $0.19 and is oversold according to daily chart indicators. Sellers are in control of the market, as indicated by the position of LRC’s Directional Movement Index (DMI), with the sellers’ strength significantly higher than the buyers’. Key momentum indicators, such as the Relative Strength Index (RSI) and the Money Flow Index (MFI), are also far from their neutral spots, indicating the oversold nature of LRC.

However, Loopring’s recent partnership with crypto tax tool Koinly shows the project is still investing for the future. The partnership allows crypto investors worldwide to file their taxes based on their crypto investments easily by connecting their Loopring public wallet address to Koinly.

Koinly can also generate reports tailored to specific tax offices. Loopring users and LRC holders can access Koinly’s comprehensive tax guides and video tutorials to help them understand the tax implications of their investments. The partnership aims to make crypto taxes simple for all users, regardless of location.

Overall, I expect Loopring’s long-term bearish trend to continue for the next few months. There is a high likelihood that the current bearish trend could result in Loopring price dropping below the $0.10 price level in the next few sessions. However, a trade above $0.25 will invalidate my bearish trend analysis.

Daily Chart