Is Loopring (LRC) buy opportunity after the recent sell-off?

Loopring LRC/USD has collapsed from $0.60 to $0.33 since the beginning of this month, and the current price stands at $0.37.

The risk of another decline still persists, but the current price could be a good entry point for long-term investors.

Payment protocol

Loopring is an open-sourced non-custodial exchange and payment protocol that allows low-cost trading and payment on the Ethereum blockchain. Loopring also provides high-speed, swaps and high liquidity without sacrificing Ethereum security at all.

The security of user assets is Loopring’s top priority, and it is important to say that Loopring protocol does not rely on any external validators, consensus, or cryptoeconomic assumptions.

In this way, users are empowered and always in control of their assets, and nobody stands between them and their Ethereum-based assets.

Loopring can process thousands of requests off-chain with verifiably correct execution, and it deployed the most secure scaling mechanism called zkRollup.

Rather than settling trades on the Ethereum blockchain directly, zkRollups enable to complete key computations elsewhere, which is in contrast to other decentralized exchanges, where trades require transactions to be confirmed by the Ethereum network.

zkRollup can achieve much higher throughput than Ethereum, the cost per transaction is reduced to as little as 1/100th the cost of Ethereum, and users can access their assets in all circumstances.

LRC is the Loopring protocol token that incentivizes protocol-desirable behavior from liquidity providers, insurers, and DAO governors. LRC is necessary for key operations on the protocol, and anyone who wants to operate a decentralized exchange on Loopring must lock up at least 250,000 LRC.

LRC is currently down more than 80% from the highest price level in 2022; still, Loopring is a very promising project, and the price of LRC could advance again to the levels that we saw in January 2022.

Technical analysis

The cryptocurrency market continues to be under pressure, Bitcoin is trading close to the strong support level that stands at $20,000, and if you decide to trade this cryptocurrency in the upcoming days, you should consider that LRC can weaken even more.

The rising risks of the recession continue to keep investors in a negative mood, but despite this, the current price of LRC could be a good entry point for long-term investors.

Data source: tradingview.com

The current support level stands at $0.30; $0.50 and $0.75 represent the current resistance levels. If the price falls below $0.30, it would be a firm “sell” signal, and we have the open way to $0.25 or even below.

On the other side, if the price jumps above the $0.50 resistance, the next price target could be around $0.60.

Summary

The last several days have been rough for the cryptocurrency market, and cryptocurrencies have suffered from heavy selling due to hawkish signals from central banks and uncertainty due to the Ukraine crisis. Loopring (LRC) is currently down more than 80% from the highest price level in 2022, but the current price could be a good entry point for long-term investors.

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