- Loom Network price has surged in the past few weeks.
- Binance and LBANK have listed its futures contracts in their platform.
- The token is in the markup stage of the Wyckoff model.
Loom Network price surged to the highest level this year as its remarkable rally gained steam. The token surged to a high of $0.2150, ~450% above the lowest level this year. This rally has brought its total market cap to more than $236 million.
Exchange listings
Loom Network’s recent surge started a few weeks ago after Gate.io listed the token in its platform. This was a notable move since Gate is one of the biggest exchanges in the world, handling hundreds of millions of transactions every day.
The reason for the current rally is that Binance announced that it would list its perpetual futures, giving users up to 10x leverage. In a separate statement, LBANK said that it would list LOOM futures in its ecosystem.
Historically, these exchange listings tends to have a major short-term impact on cryptocurrencies. In most cases, the impact of these listings tends to be short-lived.
Loom Network’s recent resurgence is notable because the project was declared dead in 2020. At the time, Loom had a market cap of over $400 million. It shut down all its social media platforms while the core developers disappeared.
This makes it a high-risk investment for now since this could be a pump and dump scheme. Besides, Loom Network’s on-chain metrics shows little activity, with daily transactions of less than 1,000.
Loom Network price forecast
In my last note on Loom Network, I noted that it had formed a golden cross pattern and predicted that it would surge. That prediction was correct as the token has hit another year-to-date rally.
It remains above the 50-day and 200-day moving averages while the Relative Strength Index (RSI) has moved above the overbought level. The Wyckoff method is one of the best ways of explaining this rally.
Before the surge, Loom Network was in a consolidation phase as the smart money accumulated it. It has now entered the markup phase, when the demand is higher than supply.
I now suspect that it will enter the distribution phase leading to a markdown. If this happens, the next level to watch will be at $0.10, ~53% below the current level.
