2023-10-13 09:51 |
The price of LOOM, the native token of the Loom Network blockchain, has surged over 500% in the last month to highs above $0.28 – its highest level since June 2018. This parabolic rise has propelled LOOM’s market capitalization to heights not seen in years. Its +573% market cap ascension has justifiably been the topic gaining the most attention in crypto forums lately, according to Santiment data.
Speculation abounds regarding the drivers behind LOOM’s price surge. Some analysts express skepticism about its sustainability despite its parabolic breakout. While some attribute the price rise to LOOM’s multichain interoperable platform, others argue that it displays signs of a pump-and-dump scheme, rather than robust fundamentals—especially given the lack of groundbreaking project news that might justify such a strong price rise. Nevertheless, it appears that the price ascent is nearing its end.
Trader Warns of Impending CorrectionAccording to crypto trader BitcoinHabebe, LOOM is hitting very strong weekly resistance around $0.28 and the rally is in danger of reversing. “It’s overbought, with bearish divergences on many timeframes. The dump could be big,” he tweeted.
He points to the token stalling at major technical resistance as a sign the surge could be an unsustainable bubble ready to pop. According to him, he is identifying a formidable weekly resistance being hit by LOOM and initiating a strategic move into shorts via dollar-cost averaging. He cites “overbought” statuses and “bearish divergences” across various timeframes as harbingers of a potentially massive dump awaiting in the wings.
In summary, LOOM’s meteoric rally has reached a tipping point according to crypto traders. With the token hitting major resistance after a euphoria-driven price surge, the risk of a major correction is high. How LOOM performs at these heights could determine whether the token builds a new long-term price floor, or crashes back down to earth.
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The post LOOM Explodes 500%, Reaching Highest Market Cap in 5 Years – But There’s a Big Catch appeared first on CaptainAltcoin.
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