Loopring price moved sideways this week and is hovering near its lowest level on record. It was trading at $0.30 on Thursday, meaning that it has crashed by 84% this year, making it one of the worst-performing cryptocurrencies in the industry. As a result, its total market cap has crashed to about $406 million, making it the 86th biggest cryptocurrency in the world.
Loopring on-chain analysis
Loopring is a leading layer 2 blockchain project that is in the Decentralized Finance (DeFi) and non-fungible tokens (NFT) projects. The network has seen robust growth this year even as the cryptocurrency industry has struggled. In its second-quarter report, the developers said that the number of smart contract wallets rose to over 130k while the volume of trades rose to over $5 billion.
This growth was due to the company’s partnership with GameStop, which launched its NFT platform using its technology. Users can easily buy and trade the company’s NFTs using its platform. However, after the initial buzz of the partnership, volume of GameStop’s NFTs has dropped recently.
At the same time, on-chain data shows that Loopring’s activity is falling. For example, as shown below, the number of unique senders has crashed to the lowest level since 2021. The same is true for unique receivers and token transfers this year. This explains why the Loopring price has crashed this year.
Loopring price prediction
The four-hour chart shows that the LRC price has been in a consolidation phase in the past few days. In this period, it has remained between the important support and resistance levels at $0.2855 and $0.3160. It has managed to move above the 25-day moving average. At the same time, the price has moved slightly above the 25-day moving average.
Therefore, Loopring price will likely remain in this range in the near term and then have a bearish breakout. If this happens, the next key support level to watch will be at $0.2855, which is the lower side of the range. A drop below the support will see it continue falling as sellers target the key support at $0.25. On the other hand, a move above the resistance level at $0.3200 will invalidate the bearish view.
