Loopring bears initiate takeover after double top, TVL plunges 30% within two weeks
- Loopring total value locked hit a high of $768.7 million before plummeting 30% within two weeks.
- The exchange inflow of Loopring has increased, indicating a spike in selling pressure on the token.
- Analysts identified double top in the Loopring price chart, predicting a nearly 40% drop in price.
Loopring, the Ethereum token, became popular with a spike in social dominance and on-chain activity. Analysts identified a double top in the Loopring price chart, and the token’s total value locked, however, and since then the price has plunged.
Loopring price struggles to recover from recent drop
Total value locked is considered market capitalization for DeFi. Loopring’s total value locked (TVL) has plunged 30% over the past weeks. Currently, the token’s TVL is $768.7 million, based on data from DeFi Pulse.
Total value locked (USD) in Loopring
Analysts at the crypto intelligence firm Santiment noted a spike in the exchange inflow of Loopring tokens. Analysts consider the surge in exchange balance of Loopring an indicator of increased selling pressure.
Analysts witnessed a spike in whale activity. Investors with 100,000 to 1,000,000 Loopring tokens, referred to as ‘smart money’, have historically shed their holdings. There is a lack of whale confidence since the price dropped below $2.82.
On evaluating the Loopring chart, analysts identified the double top pattern, predicting a takeover by bears and a nearly 40% drop in price.
@MoooXBT, a cryptocurrency analyst, has observed parallels between Loopring and Sand token price rally. The analyst says that historically patterns have rhymed.
History doesn't repeat itself, but it often rhymes.$Lrc vs $Sand https://t.co/th43UFs0E8 pic.twitter.com/MhFpfzwnqg
— Great Ape Guts (@MoooXBT) November 26, 2021
Analysts at Santiment have concluded their analysis with slightly concerning signs of selling by whales. The overall network level looks decent.
After witnessing a massive influx of users and liquidity in the layer-2 ecosystem, Loopring emerged as the fourth largest network. However, Loopring price has posted over 26% losses over the past two weeks.
Cryptocurrency analysts at the YouTube channel “Crypto Dubai” consider $2.50 an important resistance level for the Loopring price. The token is under selling pressure from large wallet holders, and the price has dropped below $2.50.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
