The Loopring (LRC) price has successfully flipped the previous resistance level into support. The price is expected to continue to rise. LRC is the token of the decentralized exchange Loopring DEX, built on the Ethereum ERC-20 standard.
Potential breakout
The Loopring (LRC) price has been trading inside a descending wedge since May 2022. This is a bullish pattern that often leads to a breakout in most cases.
Indeed, after bouncing up from the wedge’s support line at the beginning of January 2023, LRC price broke out of the pattern at the end of January. This move helped the price approach the horizontal resistance at $0.5.
Although rejected, the price has successfully flipped the wedge’s resistance line into support during the week of March 6-13. This indicates that LRC may have formed a bottom.
The wedge pattern has a target of $0.59, calculated by connecting the pattern’s height to the breakout point. As it has been formed for nearly 9 months, the price movement after the breakout can be very strong.
Another bullish signal is that the price has also flipped the 20-week MA line into support. Therefore, the price is expected to rise to $0.5 and higher towards the pattern’s target of $0.59.
The weekly RSI indicator supports this possibility by creating a higher low and being above 50.
Bullish pattern
After bouncing up from the support level of $0.26 on March 10, LRC price broke out of the resistance level at $0.33 and confirmed it as support on March 28.
During this process, LRC price also formed a bull flag pattern. This is a bullish pattern that often leads to the continuation of the uptrend.
The price is currently in the process of breaking out of the pattern. If successful, it could rise to the next resistance level at $0.5.
The RSI indicator supports the breakout possibility when maintained above 50 and is sloping up.
Conclusion
Both long-term and short-term signals support the possibility of LRC continuing to rise. The nearest target is found at $0.5 and higher to $0.59.
This view will be invalidated if the price breaks down below $0.33.
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This article was republished from azcoinnews.com
