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Hodl or Take Profits? Market Wonders as Loom Network Achieves 6-Year High

Published October 16, 2023 12:38 PM
Nikola Lazic
Published October 16, 2023 12:38 PM

Key Takeaways

  • LOOM has jumped by 1,200% since September.
  • The coin reached a new yearly high and it’s getting close to its 2018 all-time high.
  • Can it hit new ATH this year?

September was a turning point for LOOM, as its price, previously lingering around the $0.038 support level, embarked on an explosive, nearly parabolic ascent. Within a brief timeframe, it surged to $0.50, marking an astonishing 1200% increase.

What makes this surge truly remarkable is that it occurred in the absence of any significant developments within the Loom Network. The lack of substantial fundamental catalysts makes this price rally appear somewhat unexplained.

So, what exactly is propelling this meteoric rise? In this analysis, we will delve into the underlying factors that have been driving LOOM’s recent performance and shed light on its potential future trajectory.

Korean Pump

The recent placement of LOOM as the leading performer on Upbit, one of South Korea’s prominent cryptocurrency exchanges, has reverberated throughout the crypto community. Such abrupt spikes, particularly in the context of the Korean cryptocurrency market, tend to evoke skepticism, given the region’s past associations with pump-and-dump schemes.

The swift rise of LOOM, devoid of substantial underlying developments, has only heightened these concerns.

 

In a recent post on X, Ki Young Ju , the CEO of CryptoQuant, sheds light on this phenomenon, attributing it to South Korea’s stringent capital control measures. He explains that these measures effectively eliminate the possibility of “arbitrage opportunities between global exchanges,” which makes such price spikes not entirely unexpected.

Adding to the intrigue is the rumored introduction of a LOOMWON trading pair on Upbit. This speculation stems from the exchange’s recent support for the REI token following its hardfork update. As the cryptocurrency community eagerly awaits Upbit’s next moves, the exchange’s future actions will play a pivotal role in clarifying its intentions and strategies regarding LOOM.

Loom Price Analysis 

Loom’s price journey has resembled a rollercoaster ride since its inception. After surging to a peak of $0.80 in April 2018, it endured an extended bearish period, hitting a low of just $0.0077 in March 2020. A subsequent rally brought it to $0.267 by April 2021, yet it still fell short of its earlier highs.

LOOM price context

Loom’s price dynamics traced a descending flat triangle pattern, marked by a declining resistance and a consistent support level near $0.38. A substantial breakout unfolded after September 5, with the price not merely touching but surging past the descending resistance, even surpassing the high set in April 2021.

An important gauge, the Relative Strength Index (RSI), climbed to 95% on a weekly scale, signaling a potential overextension. A comparable RSI level was observed in February 2021, shortly before the April peak. This prompts the question: Does room still exist for further growth despite the rapid ascent?

LOOM Price Prediction

Upon a more detailed analysis of the 4-hour chart, it becomes apparent that the recent uptrend, initiated in September, may be approaching its conclusion. Nevertheless, it’s crucial to consider that this might represent just a segment within a broader bullish phase.

The forthcoming completion may be limited to the fifth wave of the recent uptrend, implying a potential sharp correction on the horizon, with a possible target around the $0.13 level.

LOOM price prediction
However, when we zoom out and observe the broader trajectory, tracing the uptrend all the way back to December 29, this correction could very well be a temporary pause before Loom resumes another bullish trajectory. If this scenario materializes, we may witness Loom reaching a new all-time high, potentially surging to the $1 mark by late 2023 or early 2024.

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

 

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