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LOOM/USDT Price Action Update - Major Breakout Incoming?
LOOM/USDT has caught the attention of traders with a significant move on the daily chart. Let's dive into the key technicals and what they could mean for the price action going forward.
Key Technicals:
1. Descending Wedge Breakout: After months of consolidation, LOOM has broken out of a large descending wedge pattern. This pattern is typically a bullish reversal signal, where price consolidates with lower highs and lower lows until it breaks to the upside. A confirmed breakout could signal the end of the downtrend that started earlier this year.
2. Resistance Zone Ahead: LOOM is currently trading around $0.0598 with a daily gain of +1.87%. However, the price faces a critical resistance zone between $0.080 - $0.100, as highlighted in the chart. This region is crucial for any sustained bullish movement. A breakout above this resistance zone would signal strong buying momentum and could potentially push LOOM towards new highs.
3. Volume and Momentum: The recent price movement has been supported by a noticeable increase in volume, indicating growing market interest. If this trend continues, the likelihood of breaking above the resistance increases significantly. Watch for an uptick in volume as an early confirmation of a sustained rally.
4. Support Levels: On the downside, the $0.0394 level serves as a solid support. This level has been tested multiple times and has held strong. If LOOM fails to sustain the breakout, this would be the key area to watch for potential bounce opportunities.
5. Potential Bullish Targets:
First target: $0.080 - $0.100 (Resistance zone).
If this resistance is broken, the next potential target could be around $0.120 - $0.140, based on previous price action.
Beyond that, a more aggressive move towards $0.160 is possible in the medium term if the broader crypto market remains favorable.
Market Sentiment:
The broader market sentiment will play a key role in LOOM's price action. Keep an eye on Bitcoin and Ethereum's performance as they often influence altcoins like LOOM. A bullish move in the overall market could further fuel LOOM's breakout, while a market correction might slow down its momentum.
Conclusion:
LOOM/USDT is at a crucial juncture, with the price breaking out of a descending wedge and heading towards a significant resistance zone. Traders should closely watch for confirmation of the breakout with increased volume and sustained price action above $0.080. A failure to break above resistance could lead to a retest of support at $0.0394.
Stay vigilant, and remember to manage your risk as the crypto market can be volatile.
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What do you think of LOOM's price action? Will it break the resistance and head to new highs? Let me know in the comments!
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