Bitcoin price may have taken a temporary breather but the sharp correction below $30,000 did little to dismay the bullish sentiment of crypto market participants.
The CME Bitcoin futures market reached an all-time high volume at $2.7 billion on Jan. 4 and the same day, LMAX Digital also achieved a record-high at $2.62 billion in traded volume. This huge surge in trading activity suggests institutional investors are continuing to invest in Bitcoin (BTC).
Due to institutional adoption, analysts believe that Bitcoin could rally as high as $100,000 in 2021. However, JPMorgan Chase analysts led by Nikolaos Panigirtzoglou have a slightly different view as they believe Bitcoin’s volatility must converge with that of gold to result in a “crowding out of gold.” Until then, the analysts do not expect Bitcoin to rise above $146,000 this year.
Even as Bitcoin takes a breather from its recent uptrend, there are a few tokens that have continued their up-move unabated. Let’s inspect the possible fundamental reasons behind their rally and ascertain the technical levels to watch out for.
Ether’s price has surged in the past few days and so has the activity on the Ethereum network. This has boosted gas fees on the network by a huge margin. While the higher fees may not trouble the wealthy, the smaller traders are likely to find it difficult to do lower-valued transactions.
To save on the skyrocketing gas fees, traders seem to have onboarded Loorpring (LRC), which saw boosted trading volume on its decentralized exchange, and data from Dune Analytics shows the figure rose to $5.49 million.
It is only recently that Loopring Exchange v2 was launched based on Loopring Protocol 3.6, and considering. the current market-wide rally and surge in ETH gas fees, it could not have come at a better time.
The team also plans to launch AMM liquidity mining and a few other programs on Jan. 7 to boost adoption of zkRollup layer-2 scalability and increase liquidity, According to Loopring’s estimation, the annualized returns of the initial three AMM pools could be as high as 40%.
If trading activity remains high, the Ethereum network’s congestion may not ease quickly and that could work in Loopring’s favor. Let’s see how its token has responded to this positive fundamental development.
LRC price skyrocketed from $0.175 on Jan. 3 to an intraday high at $0.585 today, a 234% rally within three days. This surge has pushed the RSI deep into the overbought territory, which suggests an increased risk of a minor pullback or consolidation.
The LRC/USD pair is currently facing a minor resistance close to the 200% Fibonacci extension level at $0.58952.
However, if the bulls continue their buying and push the price above $0.509, the rally could extend to the 261.8% extension level at $0.73617 and then the 300% extension level at $0.82681.
In a strong uptrend, the corrections are sharp…
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