- Loopring saw its total value locked at a high of $768.7 million before declining by 30% within fourteen days.
- The crypto sees increased exchange inflows, showing amplified selling momentum on the coin.
Loopring, an Ethereum token, gained popularity due to increased on-chain activity and social dominance. Meanwhile, cryptocurrency analysts noted a double top on Loopring's price chart. That had seen the coin's TVL, and the price has plummeted.
Loopring Struggles to Recover from Recent Crash
Total value locked (TVL) serve as a market cap for decentralized finance (DeFi). Loopring has seen its TVL plummeting by 30% within the last few weeks. At this publication, the altcoin has its total value locked at $768.7 million (data from DeFi Pulse).
Analysts at the cryptocurrency intelligence company Santiment identified increased exchange inflow by Loopring tokens. The experts consider this metric an indicator for amplifying selling momentum. Furthermore, Santiment specialists saw an increase in whale activity. Investors holding 100,000 – 1,000,000 Loopring tokens have been shedding their holdings. Whale confidence lowered when the crypto price plummeted under $2.82.
Keep in mind that the price chart showed Loopring printing a double top formation, suggesting bears dominance and an almost 40% price plummet. A crypto analyst @MooXBT identified parallels between SAND token and Loopring. The expert said the alt's historically patterns matched. Santiment analysts completed their Loopring evaluated with somewhat concerning selling signals by whales. The total network-level seems decent.
Loopring ranked the fourth largest ecosystem after seeing a colossal influx of investors and liquidity within the Layer2 network. Nevertheless, the alternative coin has lost more than 26% of its price within the last two weeks.
YouTube channel by a crypto expert Crypto Dubai sees $2.50 as a vital resistance zone for Loopring. The altcoin encounters selling momentum by large wallet holders, and Loopring plummeted below $2.50.
For now, Loopring network witnesses bear dominance. The altcoin seems prone to plunges to collect upswing momentum. Furthermore, the crypto formed a double top, predicting a 40% price dip. Loopring's road with fewer obstacles is the downward one.