Since the beginning of September, the Loom coin price has outperformed its peers in the crypto market. From the September 2 low of $0.0374, the cryptocurrency price rose significantly to $0.2948, recording a total gain of 682.6%. However, the price started witnessing supply pressure around the $3 psychological level, raising the question of whether the bullish momentum has been exhausted.
The potential correction could drop the price by 27.5% and then reach a key support at $2.
There is a 58% loss in LOOMer's intraday trading volume
LOOM price is trading at $0.27. At the $0.3 barrier, the cryptocurrency price formed two long wick rejection candles, reflecting indecision among investors. These uncertainty candles, which form after a large rally, indicate that bullish momentum has been exhausted and an impending correction.
It is common for an asset to show some pullback after a significant rally to compensate for depleted bullish momentum. This is a healthy activity that can also offer buyers the opportunity to reaccumulate this crypto at a discounted price.
The first significant support lies at $0.33, which aligns with the 23.6% Fibonacci retracement, followed by psychological support at $0.2, which aligns with the 38.2% Fibonacci retracement. Additionally, the $0.165 level, which corresponds to a 50% retracement, is a very important support level. A break below this point could indicate that buyer momentum is weakening, indicating increased risk to the cryptocurrency's bullish outlook.
Exponential Moving Average: The 20 and 50-day EMA can act as strong support during the pullback phase.
Relative Strength Index: The daily RSI slope at the 86% overbought retracement indicates the potential for a higher correction.
