Completion of the rounding bottom pattern sets the LOOM price for a prolonged bullish trend; is it still worth buying?
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Defying the widespread uncertainty in the crypto market, the loom coin price has witnessed a parabolic rally since the beginning of September. From the September 2nd low of $0.037, the coin price has surged 855% to currently trade at $0.35. Amid this rally, the coin price has also breached the neckline resistance of a long-coming rounding-bottom pattern, indicating this altcoin is poised for further rally.
Also Read: Why Ark Invest’s Updated Bitcoin ETF Filing Is Bullish for BTC Price?
Will LOOM Price Recovery Extend?
- A bullish breakout from the $0.248 neckline resistance sets the LOOM price for a 27% surge
- The ongoing rally may face supply pressure around $0.4 and $0.486
- The intraday trading volume in LOOMer is $474 Million, indicating a 177% gain.
Source- Tradingview
The Loom Network coin price following the sentiment of the uptomber, has outperformed a majority of major cryptocurrencies. On October 12th, the coin price gave a decisive breakout from the $0.248 neckline resistance of a rounding bottom pattern.
In theory, this chart pattern is often spotted at major market bottoms and provides an early sign of trend reversal. The loom price forming this pattern for over 900 days accentuates that it should have a strong impact on this asset.
By the press the loom price trades at $0.365 with an intraday gain of 5.86%. In theory, the potential target under the influence of a round bottom pattern is the same distance between the bottom floor and neckline resistance measured from the breakout point.
Thus, with sustained buying the coin price is likely to rise another 27% to hit the $0.468 mark.
Is the Current Rally Sustainable?
It is crucial to note that the looming price has witnessed a remarkable recovery in just a short span. In technical analysis such aggressive buying is unstable and therefore the prices would need some pullbacks to recuperate the exhausted bullish momentum. The anticipated pullback could retest the prior support zone and offer dip opportunities to traders.
- Pivot Level: The traditional pivot level shows that $0.4 and $0.486 are the nearest significant resistances standing against buyers.
- Relative Strength Index: The daily RSI slope at the overbought regain of 92% indicates overextended buying active in this crypto.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
