Loopring price declined sharply during the weekend after the platform went through a major DDoS attack that knocked it offline for 11 hours. LRC crashed to a low of $0.3340, which was much lower than last week’s high of $0.4266.. Other coins like XRP and ETH have also pulled back recently.
Loopring hack explained
Loopring is a leading Ethereum layer 2 network that uses a technology known as zero-knowledge (zk) rollups. A zk rollup is a blockchain protocol that processes transactions, performs calculations, and stores data off-chain while holding asses in an on-chain smart contract. It increases throughput and scalability through mass transfer processing rolled into a single operation.
Loopring’s platform is a decentralized exchange (DEX) that makes it possible for people to buy and sell tokens in a decentralized manner. Its transactions are much faster and cheaper than those in Ethereum and other platforms,
The main catalyst for the Loopring price crash during the weekend was a DDoS attack that pushed it offline for 11 hours. During this period, it was impossible for people to buy and sell cryptocurrencies and non-fungible tokens (NFT). It also led to an increase of the Rate per Second (RPS) of transactions.
The hack did not lead to a loss of assets for its clients. As a zk rollup, Loopring inherits complete Ethereum L1 security, meaning that users can always withdraw their assets back to L1 with no permission needed.
In a statement, the developers said that they will now leverage AWS’s security capability to better mitigate future attacks.
Loopring price prediction
The four-hour chart shows that the LRC price crashed hard during the weekend following the hack. It has crashed by about 20% from its highest point this month. The coin remains slightly above the 50-day EMA while the Relative Strength Index (RSI) has moved to the neutral level. It is slightly above the key support level at $0.3160, which was the highest point on September 23rd.
Therefore, the path of the least resistance for the Loopring price is downward, with the next level to watch being at $0.3160. A move above the resistance point at $0.3500 will invalidate the bearish view. This view is in line with my previous LRC forecast.