The Loopring price is down by 18 per cent this month, extending the 15 per cent drop it went through in September. Unsurprisingly, the current bearish trend has persisted throughout the year, which has resulted in Loopring’s year-to-date drop in the value of 88 per cent.
Although part of the reason for this drop can be attributed to the general trend of the cryptocurrency industry and the fact that Loopring is significantly correlated with other cryptos, therefore, each time there is a market shock, Loopring’s price is dragged down, the current price drop goes much deeper.
In one of our recent Loopring analyses, we noted that on-chain data had started to show weakness. The analysis showed that the number of unique senders had crashed to the lowest since 2021. The number of receivers of Loopring tokens was also on a decline, and even the number of tokens traded was also falling.
Looking at the data from the past few weeks, the trading volume of Loopring has also been in a slow decline. For instance, in mid-September, the trading volume was averaging over $60 million per day. However, data from the past few trading sessions shows trading volume below $30 million daily. Such a huge drop may have an impact on the market and cause a bearish trend.
Loopring Price Prediction
As we have seen above, Loopring metrics have been trending negatively. On the technical side, these metrics have translated into an aggressive bearish trend that has seen the Loopring price dropping by 18 per cent this month.
Therefore, based on the data above and the price action of the past few trading sessions, my Loopring price prediction expects the current bearish trend to continue. There is a high likelihood that we may see prices dropping below the $0.20 price level in the coming sessions. For the long term, a drop below the $0.15 price level is also a possibility. My analysis will be invalidated should the price rise to trade above $0.27.