Loopring price jumped sharply on Friday as demand for the coin rose. LRC jumped to a high of $0.3364, which was the highest level since September 14. It has jumped by more than 40% from its lowest level this year, giving it a market cap of more than $442 million.
Why is LRC rising?
There are two main reasons why Loopring price is rising on Friday. First, the coin is rising because of the recent launch of GameStop’s NFT marketplace which is powered by ImmutableX. The launch happens a few months after GameStop launched its NFTs on Loopring. As such, investors believe that Loopring will also benefit from this launch.
Second, Loopring price is rising because of the upcoming upgrade of Band Protocol. Band Protocol is a smart oracle that provides services to Loopring. In a statement, the developers announced that they will launch the next version of the BandChain.
The new upgrade will introduce new features to the network. For example, the upgrade will increase the MaxGas per block to 50M Gas. It will also increase the throughput for oracle module by ~10 times and bump the Cosmos SDK.
According to DeFi Llama, Loopring is the second biggest app in Band Protocol with over $131 million in total value secured (TVS).
Finally, Loopring price is also doing well as the volume of the Loopring L2 Dual Investment volume grows. The network is handling over $2 million worth of volume on a daily basis.
Loopring price forecast
The four-hour chart shows that the LRC price has been in a strong bullish breakout. It rose above the key resistance level at $0.2900, which was the highest point on October 30th. The coin’s Relative Strength Index (RSI) has moved to the overbought level. Loopring price also jumped above the key resistance level at $0.3160, which was the highest level on September 23rd.
Therefore, while the bullish trend will likely continue, there is a likelihood that the coin will pull back and retest the support at $0.30, which is about 10% below the current level. A move above the resistance at $0.350 will invalidate the bullish view.