After weeks of trading sideways, Loopring’s price looks to be resuming its long-term bearish move. Today, the price is down by 4 per cent, and it looks likely to continue falling throughout the session.
Why is Loopring Falling?
The cryptocurrency industry, as a whole, started the year on a high note. However. By the time January was ending, it had already started giving signals that 2022 would be bearish. Fast forward to today, the entire industry has been aggressively bearish, recording mini-crashes in both the months of May and June.
The current strong aggressive bearish trend of the industry has also impacted other altcoins such as Loopring, which is currently down by 80 per cent year-to-date.
One of the reasons the entire industry has moved from being the go-to trading asset to the current asset is that the same factors affecting other markets, such as stocks, are also playing a huge part in the current downturn. Consumer prices are surging at the fastest annual pace in over four decades, and the recent Fed rate hike is still being felt in the cryptocurrency market. The expectations of an even tougher economic environment is also causing the price of Loopring and other cryptocurrencies to continue falling.
Will Loopring Price Trend Changing in July?
However, despite the previous months’ aggressive bearish streaks, July has started with an aggressive bullish move and is already up by 7 per cent. Looking at the chart below, one could argue that the prices are looking likely to continue with the bullish trend, and we might see the month-end with price gains.
However, today’s trading session is a reminder that the downward move can still happen and wipe out all the gains made. Loopring is currently down by 4 per cent, and the intraday session is also looking highly likely to trend downwards.
This is why I expect the current Loopring price to continue trading with the support and resistance levels of $0.32 and 0.667, respectively, throughout the month. Although I lean more towards recovery, the previous few weeks’ price action has moved sideways, and there is a high chance that the prices will continue to stagnate.