The Loopring price has been punched in the face recently. LRC, its native token, is trading at $1.1662, which is the lowest it has been since November 2021. It has crashed by more than 70% from its highest level in 2021, bringing its $1.4 billion, making it the 88th biggest cryptocurrency in the world.
Loopring is a fast-growing blockchain platform that helps to scale Ethereum transactions. It is a layer-2 network that uses a zero-knowledge (zk) technology. Developers using the network see a throughput that is 1,000 times bigger than Ethereum. Its transactions are also significantly lower than those of Ethereum.
Loopring also powers a decentralized exchange that allows investors to buy and sell ETH tokens like UNI, AAVE, and even ETH at a lower cost than those in Ethereum. The Loopring price jumped sharply in 2020 as demand for Ethereum-killers rose.
Earlier this month, the price jumped as investors reacted to a report by Wall Street Journal (WSJ) that hinted that GameStop was seeking to acquire Loopring for its blockchain networks. The deal failed to go through because of Loopring’s Chinese roots.
The decline of the Loopring price is also because of the falling demand for Ethereum-killers. In the past few weeks, some of the best-known projects like Kadena and Solana have all declined.
Loopring price prediction
The daily chart shows that the LRC price has been in a strong bearish trend in the past few weeks. As a result, the coin has moved below the 61.8% Fibonacci retracement level. The 50-day and 25-day moving averages (MA) have formed a bearish crossover pattern while the Relative Strength Index (RSI) have been in a downward trend.
Therefore, at this point, the Loopring price will likely keep falling as bears target the next key support at $0.900. However, a move above $1.6218 will invalidate the bearish view.