- Loopring has been one of the best performing cryptocurrencies this week.
- The coin jumped after Loopring launched a beta version of GameStop’s NFT marketplace.
Loopring price has been one of the best performing altcoins this week after the latest news on its partnership with GameStop. The LRC token has also jumped because of the overall performance of Bitcoin and most altcoins. It is trading at $1.1085, which is the highest it has been since February this year.
Loopring and GameStop partnership
A few months ago, GameStop announced that it was moving into the non-fungible token (NFT) industry through a partnership with Immutable X. A few weeks later, the company changed its mind and decided to partner with Loopring, an Ethereum layer 2 network for trading. GameStop’s goal was to become a leading player in the digital space in a period when its stock had become one of the most active in Wall Street.
The main reason why the Loopring price has jumped sharply lately is that the platform’s developers announced that they were launching the beta version of GameStop’s NFT platform for gamers. They also unveiled the link to the NFT marketplace where users can create their accounts and start trading.
Therefore, the LRC price has done well because analysts expect that Loopring will become a valuable player in the NFT industry. The ecosystem has already had some success in the Defi sector, where it has over $372 million in total value locked (TVL).
However, historically, these news-driven pops tend to last for a few days and then the hype dies. For example, last week, the ApeCoin price jumped to a record high as the hype of the Bored Ape Yacht Club rose. By the weekend, the coin had declined by a significant amount.
The same situation happened when Shiba Inu jumped sharply after it was listed in Binance or when Elon Musk promoted Dogecoin in the SNL. For one, people will start to wonder whether the NFT platform will do well and the overall implication on Loopring itself.
Loopring price prediction
The daily chart shows that the LRC price has been in a strong bearish trend in the past few months. Along the way, the coin formed a falling wedge pattern that is shown in yellow. In most cases, a falling wedge is usually a bullish sign. At the same time, the 50-day and 20-day volume-weighted moving average (VWMA) have formed a bullish crossover pattern.
Therefore, there is a likelihood that the Loopring price will retreat as bears target the upper side of the wedge pattern at around $0.7050, which is about 36% below the current level. This pattern is known as a break and retest and is usually a sign of continuation.
