Loopring (LRC) is poised to break out and has 50-100% upside potential

Loopring is one of the most promising projects in the cryptocurrency sector today. In fact, in early November 2021, the LRC price surged more than 10 times, from $0.4 to an all-time high of $3.86. However, as of December 2021, its activity has been somewhat lackluster.

As Bitcoin fell almost 50% against ATH, almost 75% of Loopring LRC’s market cap was wiped out.

However, it looks like the price has finally bottomed and is becoming a very attractive option as the broader crypto market starts to recover.

LRC/USDT | Source: TradingView

Looking closely at the technical structure of the LRC, it is clear that the price broke out of a descending triangle a few days ago and attempted to breach the immediate $1.20 resistance. Despite the fact that this is not possible, the technical structure remains very bullish and any break above $1.20 will result in a rally of at least 50% to around $1.8.

Thus, the RSI shows a bullish momentum (yellow line).

So overall, it could spend more time consolidating as the broader market regains momentum and soon recovers shortly thereafter.

Besides technical indicators, on-chain indicators are also showing an increasingly positive trend. The total number of addresses holding LRC remains high despite the two-month price drop. This clearly shows that people’s confidence in the project remains at an all-time high despite the easing of price action.

Total number of addresses | Source: Glassnode

Linked to this, however, is another troubling metric.

Supply from the top 1% of LRC holders has come down in price over the past 2 months. This can mean one of two things depending on the situation. First, the big players took profits right at the peak of the rally – a worrying thing.

But the second conclusion from this is that many retailers bought the dip and kept the number of addresses holding the coin at ATH despite the correction.

The offer is held by the top 1% of addresses | Source: Glassnode

Getting back to the good news, the LRC’s MVRV-Z-Score is just a tad away from potentially entering positive territory, suggesting that a price rally from here could put it back into a well-valued position.

This gives everyone a unique opportunity to buy in lower before the price goes back to where it was originally.

MVRV-Z | Source: Santiment

Social dominance has also increased recently, especially as the market begins to recover. On Feb. 4-5, when the LRC price surged nearly 50% from $0.8 to $1.2, Santiment’s social media dominance data also predicted a big surge.

Social Dominance Rate | Source: Santiment

Despite some struggles due to broader market sentiment and a sell-off in the top 1% of addresses holding LRC, it looks like the coin is on the cusp of a recovery. Investors can earn 50-100% profits with this coin.

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