The tired uptrend in LOOM’s price suggests a small pullback. Is it a good time to buy during this dip?
Since early September, Loom coin’s price has been exceptional, surging from $0.0374 to $0.2948, a 682.6% gain. However, it’s now facing resistance at the $3 mark, suggesting a slowdown in the bullish trend.
LOOM Price Faces Resistance at $3, Potential 27.5% Correction Ahead
- The LOOM coin price is encountering strong resistance at the $3 level.
- There’s a possibility of a 27.5% price drop before finding significant support at $2.
- Intraday trading volume for LOOM is at $276 million, showing a 58% decrease.
Source- Tradingview
LOOM Coin’s Parabolic Surge Raises Concerns of Correction
- The LOOM coin price has been surging in the daily chart, with notable trading activity on the South Korean exchange Upbit.
- Currently, LOOM is trading at $0.27, with a small daily gain of $0.5.
- However, it faces resistance at $0.3, leading to indecision among traders and signaling a potential correction.
- It’s common for an asset to retrace after a significant rally, providing an opportunity for buyers to acquire it at a lower price.
Key Support Levels for LOOM Coin in Potential Correction
- As LOOM Coin faces a potential correction, the Fibonacci Retracement Tool can help identify important support levels.
- The first significant support is at $0.33, coinciding with the 23.6% Fibonacci level, followed by the psychological support at $0.20, aligning with the 38.2% Fibonacci retracement.
- Another crucial support level is at $0.165, corresponding to a 50% retracement.
- The 20-day and 50-day Exponential Moving Averages (EMA) could also provide strong support during the retracement.
- The daily Relative Strength Index (RSI) shows potential for a correction, with an overbought reading of 86%.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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