The LOOM Network (LOOM) has been making waves in the cryptocurrency market, reaching a new yearly high of $0.210. Its recent performance has ignited discussions about its potential to break into the top 100 cryptocurrencies by market capitalization. In this article, we’ll explore the recent surge in LOOM’s price, technical analysis, and the factors contributing to its ascent.
Breaking Out of a Long-Term Resistance Trendline:
Technical analysis on the weekly timeframe reveals a significant breakthrough for LOOM. The cryptocurrency managed to breach a long-term descending resistance trendline that had been in place for a staggering 950 days. This breakout occurred at the beginning of October, setting LOOM apart from the bearish trend observed in the broader crypto market for the same period.
A Steady Climb to New Highs:
Following the decisive breakout, LOOM’s price has experienced rapid growth, culminating in a new yearly high of $0.210. Subsequently, the cryptocurrency faced a slight pullback, verifying the $0.200 horizontal area as a resistance level. Notably, this resistance zone has been established since 2020 and serves as the final obstacle before revisiting the all-time high of $0.770.
Futures Listings and Market Buzz:
Market dynamics have also been influenced by recent announcements. LBANK declared that it would list LOOM on its futures platform with 10x leverage trading, starting on October 11. Binance Futures made a similar announcement, further adding to the excitement surrounding LOOM’s price surge. It remains uncertain whether these announcements were made in response to LOOM’s remarkable gains or if they catalyzed the surge themselves.
LOOM’s Ascent Toward the Top 100:
Due to its recent surge, LOOM is now positioned at #107 in terms of market capitalization, with a valuation of $26 million. It is on the cusp of entering the top 100 cryptocurrencies by market capitalization, currently just outside the top tier. To break into the top 100, LOOM needs to sustain a price of $0.215.
Bullish Momentum Supported by RSI:
The weekly Relative Strength Index (RSI) provides further insight into LOOM’s bullish trajectory. The RSI is a key momentum indicator that assesses whether an asset is overbought or oversold, helping traders make informed decisions. An RSI reading above 50 in an upward trend is indicative of a bullish market sentiment.
Currently, LOOM’s RSI is above 50 and is on the rise, signaling bullish strength. Importantly, the indicator has not generated any bearish divergence, which might indicate an impending decline.
Next Resistance and Potential Caution:
If LOOM manages to surpass the $0.200 resistance level, the next significant obstacle lies at $0.267, which corresponds to the 1.27 external Fibonacci retracement of the most recent decline.
However, it’s worth noting that a significant rejection from the horizontal resistance could potentially lead to a 40% decline, with the long-term descending resistance trendline serving as a support level, currently at $0.120.
The LOOM Network has experienced a remarkable surge, reaching new yearly highs and capturing the attention of the crypto community. Its potential to break into the top 100 cryptocurrencies by market capitalization hinges on sustaining its current momentum. While the RSI signals bullish strength, investors should remain cautious as the market is highly dynamic, and price fluctuations are common in the cryptocurrency space. LOOM’s journey to retest its all-time high remains an exciting development to watch in the cryptocurrency market.