LooksRare price recovery has wings and could double again as profit-hungry investors migrate from BLUR

After Blur’s 300% rally, the next NFT token that has grabbed traders’ attention seems to be LooksRare’s LOOKS altcoin. LOOKS price has rallied 12% in the last nine hours and shows promising signs of continuing this uptrend. 

Also read: Dogecoin price might recover losses if volume picks up

LooksRare price ready to shoot higher

LooksRare (LOOKS) price rallied nearly 100% between November 21 and 24. This uptrend retraced to $0.101, which was in line with the overall market sentiment. Unlike many altcoins, LOOKS has found support here and has bounced nearly 12% at the time of writing and shows no signs of stopping.

A sustained move higher would push it to the next weekly hurdle at $0.123. Successfully flipping this barrier into a support floor would allow LooksRare price to tag $0.202, which would append its gains from 100% to 200%. 

This move would bring it close to $0.218, which is the 50% retracement level of the 88% crash witnessed between February 2023 and June 2023. 

Also read: Bitcoin price sees flat performance as correlation with equities is on the rise

LOOKS/USDT 1-day chart

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On-chain metrics support LOOKS recovery bounce

LooksRare price rally is supported by a massive spike in active addresses and volume. An uptick in these two indicators indicates that sidelined buyers are interested in LOOKS at the current price level.

This is confirmed by the Whale Transaction Count index, which tracks transfers worth $100,000 or more. A spike in this metric coincides with the recent pullback, which reveals a buy-the-dip activity. 

LOOKS active addresses, volume, whale transaction count 

After the recent drop, the 30-day Market Value to Realized Value (MVRV) ratio has reset to zero from a peak of 42%. This index is used to track the average profit/loss of investors who purchased LOOKS in the past month. 

Since the indicator has slid from 42% to 0%, it shows that investors have booked profit and that it is safe to accumulate the token again.

LOOKS 30-day MVRV

While the bullish outlook of LOOKS price is logical, a further drop in Bitcoin price could send the altcoin crashing again. Most of the altcoins have rallied heavily in the past two to three weeks. Hence, a sudden crash in Bitcoin price could send these altcoins spiraling down. 

In this case, if LOOKS price breaks the $0.094 support level, it would create a lower low and signal a breakdown on a weekly timeframe. This move would invalidate the bullish thesis and potentially crash LooksRare price to $0.068.