Loopring price started strongly in June, and at some point, it looked highly likely that we would see the prices trading above $1 again. However, since June 7, the prices have been in an aggressive bearish trend, which has seen LRC prices drop by 34 per cent in June.
However, looking at the data today, the drop may not be all that surprising. In May, Loopring’s price dropped by 16 per cent, and in April, the prices had dropped by 42 per cent. Therefore, signs were there of a likely price drop.
In today’s trading session, the prices look to have resumed their long-term bearish trend. The prices are already down by 10 per cent; It is also highly likely that the current strong bearish trend will continue.
Why is Loopring Dropping?
Part of the reason why the Loopring price is dropping is due to the current market conditions that have seen investors leave risky ventures such as cryptocurrencies for more “traditional investments.” The result of this has seen the cryptocurrency industry enter a bearish trend.
Rising inflation rates have also meant that retail and small-scale investors do not have money to put into the cryptocurrency markets. This has also contributed to the current problems. However, the Fed’s raising interest rates has compounded most of the problems that the cryptocurrency industry has experienced in the past few months. It has meant that people are finding it harder to loan money, reducing the amount of capital coming into the cryptocurrency industry.
Loopring Price Prediction
In the next few trading sessions, much of what happens in the Loopring markets depends on factors outside of its influence. For instance, if the cryptocurrency industry continues with the bearish trend, there is a high likelihood that Loopring will follow suit.
Therefore, based on the current market factors, I expect the prices to continue falling. There is a high likelihood that we will see Looopring hit the $0.32 support level and break to the downside. There is also a high likelihood that the prices will soon be trading below the $0.30 price level.
However, if the prices retrace back and trade above $0.5, my bearish trade analysis will be invalidated. It will also signal a trend reversal to the upside.