Loopring (LRC) has weakened from $0.42 to $0.32 since April 14, 2023, and the current price stands at $0.34. Bitcoin and other cryptocurrencies also remain under pressure as traders positioned ahead of the Federal Reserve’s monetary-policy decision this Wednesday.
But where is the price of Loopring (LRC) going next, and what can we expect from May 2023? Today, Crypto Lists will discuss LRC price estimates from a technical and fundamental analysis perspective.
Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Security and sovereignty of user assets a top priority
- 2 Fed’s monetary-policy decision this Wednesday in focus
- 3 Technical analysis for Loopring (LRC)
- 4 Important support & resistance levels for Loopring (LRC)
- 5 What speaks for the rise in the Loopring (LRC) price
- 6 What indicates further downfall for Loopring (LRC)
- 7 What do analysts and experts say?
Security and sovereignty of user assets a top priority
Loopring is an open-source exchange and payment protocol that allows low-cost trading and payment on Ethereum. The security and sovereignty of user assets are Loopring’s top priority, and Loopring ensures that exchange and payment applications cannot access or lose user assets.
Users can access Loopring’s decentralized exchange and payment platform by using the Loopring Layer2 App, which is built on the Loopring protocol and run by the Loopring relayer.
This app provides a gas-free, high-speed, and secure trading, but it is also important to mention that users can use the Loopring Wallet that allows them to swap on the AMM, trade on the books, invest and earn in DeFi, and send payments to anyone, anywhere.
LRC is the utility token of Loopring protocol, and LRC incentivizes protocol-desirable behavior from insurers, liquidity providers, and DAO governors. LRC is necessary for key operations on the protocol, and anyone who wishes to operate a decentralized exchange on Loopring must lock up at least 250,000 LRC.
The popularity of this project is rising, but the future success of Loopring mainly depends on the flexibility of its strategy in response to the competitors’ moves. Loopring is competing with some heavy-weight players, and we can also not forget that regulations on the cryptocurrency market can be a threat to this cryptocurrency.
Fed’s monetary-policy decision this Wednesday in focus
The cryptocurrency market remains under pressure at the beginning of this trading week as traders positioned ahead of the Federal Reserve’s monetary-policy decision this Wednesday.
The federal funds rate is now in a range of 4.75% to 5% (the highest level since 2006), and the main question still remains how much time Fed will need to hold policy at restrictive levels in order to fight inflation. Some analysts are warning that Fed will hold interest rates at restrictive levels for longer, and because of this, they expect a recession that could hit financial markets even more.
“If the Fed indicates it’s not done raising rates, all bets are off for crypto and other risk assets. If the Fed suggests it’s done with rate hikes, it should galvanize the bulls and reignite the bull run.”
– Antoni Trenchev, Co-founder and Managing Partner, Nexo
According to Morgan Stanley, global growth this year is expected to decelerate, and financial markets are likely to experience market turbulence in the upcoming weeks. Wells Fargo analysts said that they expect to see a 10% correction on the U.S. stock market, and if a downtrend is witnessed in the U.S. stock market, the same is usually replicated in the cryptosphere as well.
Traders should keep in mind that the crypto selloffs could gather speed if Bitcoin falls again below the $25,000 mark, and in this situation, the price of Loopring (LRC) will probably be at lower price levels.
Because of this, investors should continue to take a defensive investment approach, especially because the cryptocurrency market remains extremely volatile, making it difficult to predict accurately what a coin’s price will be in a few hours and even harder to come up with a long-term target price.
Technical analysis for Loopring (LRC)
Loopring (LRC) has weakened from $0.42 to $0.32 since April 14, 2023, and the current price stands at $0.34. LRC might have a hard time holding above the $0.30 level in the upcoming days, and a break below this level would indicate that LRC could probably test the price level at $0.25.
Important support & resistance levels for Loopring (LRC)
On this chart (the period from July 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Loopring (LRC) remains under pressure, but if the price advances above the resistance that stands at $0.40, the next target could be $0.45 or even an important resistance level at $0.50.
The current support level is $0.30, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.25. If the price drops below $0.20, which represents an important psychological support level, the next target could be located around $0.15.
What speaks for the rise in the Loopring (LRC) price
The last several hours have been poor for the cryptocurrency market, and cryptocurrencies have been suffering as traders remain nervous ahead of the Federal Reserve’s monetary-policy decision this Wednesday.
Expectations for a 25 basis point hike from the Fed at its May 3 policy announcement stand at roughly 84%, and market participants will also closely monitor comments from Fed Chair Jerome Powell after the statement for clues on how long the hiking cycle may last.
Any news that gives hope that the Fed is becoming less hawkish is viewed as a positive for cryptocurrencies, and Loopring (LRC) could advance from the current price level if the Federal Reserve announces it’s done with rate hikes.
What indicates further downfall for Loopring (LRC)
Loopring (LRC) has remained under pressure since April 14, and despite this, market participants should be ready for another potential downward move.
Investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain, reflecting synchronous policy tightening aimed at containing very high inflation, worsening financial conditions, and continued disruptions from Russia’s invasion of Ukraine.
The current support level for LRC stands at $0.30, and if the price breaks this level, the next target could be $0.25 or even below.
What do analysts and experts say?
Fundamentals of Loopring (LRC) are strongly tied to the overall cryptocurrency market, and investors should consider that the effect of the 2022 crypto price crash, U.S. inflation growth, and interest rate hikes haven’t diminished from the market yet.
The U.S. central bank is widely seen raising rates by 25 basis points to the 5.00%-5.25% range this Wednesday, and analysts are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and financial markets.
According to crypto analytics firm The Block, investor sentiment fell again, and we could see a further downside in the Bitcoin price. Because of this, Loopring (LRC) might have a hard time holding above the current support level which stands at $0.30.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.