Traders need to watch this pattern to trade Loopring price profitably as 40% gain in the works
- Loopring price has been sliding lower after it slipped back below important support.
- LRC trading volume abates as a clear pattern emerges for 2023.
- Traders could book a 40% gain on the back of this pattern and see LRC hitting $0.50 soon.
Loopring (LRC) price is not making big waves for the month of March in comparison to its stellar performance in February with a peak near $0.50. Since then price action has been trading lower, and trading volume has been decreasing. The volume chart shows an important element that traders can use to pinpoint the next rally.
Loopring price on the rebound to $0.50
Loopring price is trading higher in 2023 on the back of a clear investor inflow that is jacking up the traded volume intraday. What follows after that is often another few candles that see follow-through in the coming candles. This means that traders who keep an eye on the volume chart can pinpoint when the next rally is underway and can await confirmation before trading the pure technical levels.
LRC has seen its volume in the past few days abating quite quickly, which means that a breakout will soon occur. Watch for any green spikes that match the spikes from March 13 or 14 or those that break higher. Once those become visible, expect a leg higher that could reach $0.50 by the end of April.
LRC/USD 4H-chart
The drop-off in volume could point as well to a bigger underlying issue. Watch out for red volume spikes that point to big selling volume arriving. That could point to short-term nosedive moves that will end around $0.3125 as seen throughout 2023.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
