LRC Price Analysis: Boom in Selling Pressure Teases Flag Pattern Fallout
The LRC coin falls more than 50% as it shows an ongoing retracement within a flag pattern in the daily chart. Moreover, the recent bear attack results in the fallout of the $2 mark. The rests close to the support trendline after a 30% fall in the past two weeks. Therefore, the price action indicates a high probability of a bearish breakout.
Key technical points:
Previously when we covered an article on the Loopring coin, the coin price was attempting to sustain above the $2 mark. However, despite the multiple bullish attempts to overcome the selling pressure, the price failed to overcome the influential resistance trendline.
The coin fell almost 20% in the last two days, resulting in the $2 mark breakout and approaching the support trendline of the falling wedge. Moreover, the increased trend momentum is evident by the rise in trading volume and the bearish engulfing candlestick.
The sellers are gaining trend control as the price breaks below the 50 days EMA and show retracement to the 200 days EMA. Nonetheless, the last two daily candlesticks show lower price rejection near the $1.60 support level.
The daily Relative Strength Index (35) enters the bearish territory. Moreover, with the recent dump, its line has also crossed below the 14-SMA.
Multiple Support Levels Of LRC Coin Price Collapse Under Bearish Attack
This Loopring coin price breaks below the descending triangle pattern in the 4-hour chart. The price shows a halt in downfall near the $1.70 mark. Therefore, a retracement as a retest of the bearish fallout is possible.
The technical chart indicates the important resistance levels are $1.60 and $1.00. Moreover, the support levels are $2.15 and $2.50.
The Moving average convergence divergence shows a sharp dump in the MACD and signal lines below the neutral level(0.00). The rising trend of the bearish histograms indicates strong selling pressure.Source