After losing almost 40% in the last 10 days, Loopring (LRC) seems to be gaining momentum again. Although the altcoin was trading near the ATH of $ 3.8, gaining nearly 40% on the weekly chart, recent market volatility has many speculating on recovery momentum.

LRC 4-Hour Price Chart | Source: Tradingview

Rumors and price increases

LRC rose due to the positive social sentiment amid partnership rumors with higher profits. For many in space, this altcoin rally seems to have been primarily fueled by speculation over rumors such as “Loopring partnership with GameStop to implement NFT”.

In addition, another interesting rumor in the LRC subreddit on supply-demand dynamics seems to trigger positive price waves. Rumor has it that “Coinbase no longer has an LRC and is processing LRC-related transactions very slowly due to this problem.” This will inevitably lead to a supply shock in the coming days and thus push the price of LRC down to a new ATH.

False rumors?

The proportion of LRC available on exchanges (or% supply on exchanges) has fluctuated between 30-32% of the total supply for about 2 weeks. In fact, without much change in the numbers, the history of the supply shock seems wrong.

Source: Sanbase

Could the natural rally be happening anytime soon?

The number of unique addresses that LRCs send or receive has increased 150% in the last 36 hours. This indicates a growing interest in on-chain operation of Loopring.

Source: Sanbase

In addition, the number of addresses interacting with LRC for the first time increased in a parabolic manner, peaking at 1706 last day. This is the first time the number of addresses has exceeded most in the past 24 hours ERC-20 coins in a week, as reported by Santiment. emphasize.

However, the number of addresses sending LRCs has also skyrocketed. This tends to signal an increase in profit-taking by owners and a short-term sell-off. So it seems that part of the increased on-chain activity is the fact that there is new pressure from sellers rather than organic growth.

In addition, the large trading volume and high trading volume have decreased after the surge in early November and have held lower levels since then. In addition, this could be a sign that institutional investors or larger players are moving away from the LRC.

The source: IntoTheBlock

At the time of writing, the LRC has started to decline after hitting $ 3.77 in a smaller time frame. While the price appears to be falling, based on organic growth, the coin could soon rebound if the active addresses stay higher.

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