Maker (MKR) Leads Market Recovery, will DeFi Tokens Follow?

With the market on the cusp of recovery as Bitcoin finally established itself above the $36,000 mark some altcoins seemed to be gaining momentum. Maker (MKR), the second biggest DeFi protocol in the crypto market had a lot of eyes on it. The altcoin’s over 5% gains at the time of writing made the market participants optimistic about Maker and DeFi tokens in general, especially after the recent choppy price action in the larger market.

Maker Posting Gains

Over the last week, Maker tested the lower $1614 mark which was last seen in February 2021. In May last year, MKR made a new all-time high of $6,247.16, but the asset was down 69.49% from its ATH at press time.

Maker, FXempire, MKR, DeFi, Crypto
Maker tested the lower $1760 support| Trading View | FXempire

While the token’s gains in the first two quarters of 2021 were commendable the last week’s losses have put close to 36% of Maker HODLers in loss or ‘Out of the Money’ as per data from Into The Block. That said, despite MKR’s close to 15% gains in the last two days, the larger sentiment for the coin was still largely bearish. 

DeFi Tokens to Fuel Recovery?

DeFi tokens like Fantom, Aave, The Graph, and Maker were the first to note recovery as BTC charted close to 2% gains. Notably, Fantom was one of the top gainers in the top 100 coins by market cap and noted over 10% gains. On the other hand, AAVE and The Graph noted 2% and 3.8% gains and Loopring was up 12.36% on the daily chart. 

That said, the total value locked in DeFi protocols had fallen by 2.8% and stood at $195.78 billion at press time. Additionally, looking at MKR’s TVL in DeFi, the same had dropped to $15.08 billion from $17.17 billion a week ago. Notably, MKR’s TVL in DeFi reached an all-time high of $19.9 billion on December 1 when MKR was valued at $3030. 

FXempire, Maker, Crypto, MKR, Defi
Maker TVL | Source: Defilama

While on the short-term MKR’s RSI had recovered alongside price, another price pullback can be expected if Bitcoin makes a u-turn shortly.

For Maker, the next lower price level remains at the $1300 mark while the next bullish price levels would be at the crucial resistances established at the $2240 and $2500 mark. At press time, MKR oscillated at the $1,905.76 mark noting just over 5% daily gains.

Loopring (LRC) Weakness Persists As It Moves Below $1.00

Loopring has recently managed to settle below the psychologically important $1.00 level and is testing the support at $0.95 amid crypto market sell-off.

Three Catalysts Behind the Recent Weakness

There are three main catalysts that triggered the recent downside move, which pushed LRC from $1.50 to $0.95.

From a technical point of view, LRC gained strong downside momentum after it managed to settle below the support level at 1.37.

Rumors about a potential GameStop partnership have not materialized. In addition, GameStop stock fell out of favor and declined from the $250 level in November 2021 (when the rumors have first emerged) to the $100 level as the popularity of meme stock declined.

The current crypto market sell-off, which was triggered by a global move out of riskier assets, served as an additional negative catalyst that pushed LRC below the $1.00 level.

LRC Is Oversold

lrc daily january 21 2022

LRC is currently testing the support level at $0.95. RSI is in the oversold territory and is moving closer to the extremely oversold territory, but there is some room to gain additional downside momentum in case the current crypto market sell-off continues.

In case LRC declines below $0.95, it will head towards the next support at $0.80. A move below this level will push LRC towards the support at $0.75. If LRC manages to settle below the support at $0.75, it will head towards the next support level at $0.65.

On the upside, the nearest resistance level for LRC is located at $1.07. A successful test of this level will push LRC towards the resistance at $1.17. In case LRC manages to settle above this level, it will head towards the next resistance level at $1.37.

lrc h1 january 21 2022

Taking a look at H1 chart, we can see that RSI has recently moved away from the extremely oversold territory, but LRC may still need to go through a period of consolidation to have a chance to get below the support level at $0.95.

Loopring (LRC) Moves to New Lows As Traders Lose Patience Waiting for Catalysts

Loopring gained strong downside momentum and moved towards the $1.20 level as traders continued to sell LRC despite recent rumors about a potential deal with GameStop.

GameStop-Loopring Rumors Have Not Yet Materialized

LRC enjoyed a remarkable rally back in early November amid rumors of a potential partnership with GameStop. GameStop has reportedly launched a division which will develop an NFT marketplace, but no information about Loopring’s potential role has emerged.

It looks that traders are losing patience and are not ready to wait for catalysts. LRC, which touched highs near $4.15 in November, has firmly settled below $1.50 and is moving towards the $1.00 level.

The recent increase in Treasury yields and the general pullback in crypto markets served as additional bearish catalysts for LRC as traders moved funds out of riskier assets.

Loopring bulls should watch Bitcoin dynamics closely, as a successful test of the current support level at $42,600 could push Bitcoin towards the psychologically important $40,000 level, which may lead to a strong sell-off in crypto markets.

LRC Moves Towards the Support Level at $1.17

loopring january 17 2022

LRC managed to settle below the support at $1.37 and is moving towards the next support level at $1.17. RSI has just entered into the oversold territory, but there is some room to gain additional downside momentum in case the right catalysts emerge.

If LRC declines below the support at $1.17, it will head towards the next support level at $1.07. A move below this level will push LRC towards the support at $0.95.

On the upside, the previous support at $1.37 will serve as the first material resistance level for LRC. If LRC manages to settle back above this level, it will head towards the resistance at $1.44. A successful test of the resistance at $1.44 will open the way to the test of the next resistance at $1.50.

loopring h1 january 17 2022

Taking a look at H1 chart, we can see that RSI is very close to the extremely overbought territory, so LRC may need to go through a period of consolidation before it could gain additional downside momentum.

Loopring Shows Bearish Sign Even After Rumors Of GameStop Partnership Spur

Loopring (LRC) has been seen under the radar, despite interest in NFTs. The liquidity token tumbled more than 20% in the recent past.

At the time of writing, LRC crypto currently ranks 58th position based on its market cap of $2.08 billion.

There was a lot of hype surrounding Loopring after GameStop announced that it would be launching a marketplace for NFTs, later this year. This was specifically due to GameStop’s agreements with two undisclosed crypto companies. According to crypto speculators’ predictions, one of these companies is Loopring.

What Is Loopring?

Loopring, founded by a Chinese programmer Daniel Wang, is a blockchain-based project that works on top of the Ethereum network. The project aims to incentivize a global network of users to operate a platform, enabling the creation of different types of digital asset exchanges.

Additionally, Loopring uses what’s called Layer 2, which carries out transactions off the blockchain to avoid congestion and cost. With this tech, the network doesn’t need to confirm transactions, as the Layer-2 solution will be responsible.

Another key feature includes its high speed and low costs through the use of a newer type of cryptography called zero-knowledge rollups, or zkRollups. Loopring is powered by its native utility token called LRC.

Loopring’s Bearish Run

While the other traditional cryptocurrencies struggled hard to bear above the support levels, Loopring quickly recovered from the losses to its initial levels, in late 2021. Nevertheless, it fell again under the bearish trap.

Loopring 1Week Chart

In general, the Loopring price is bearish in both the short and long-term, yet notable consolidation is expected in short-term.

However, Loopring announced on Twitter that they are “constantly optimizing.” The post read that “Loopring L2 can now Mint an NFT for just $2.50,” which is 100x cheaper than minting on Ethereum L1. 

Despite the mention that the optimization has led to cheaper costs to mint an NFT, and with an advantage of having “Ethereum-level security,” it has failed to serve as a bullish catalyst for Loopring.

Like Loopring, NFT tokens such as Axie Infinity’s AXS token, lost more than 20% of its value in the past week, despite interests coming from top companies.

SAND and MANA join the pack with their losses in recent times, according to Coingecko data.

Binance Adds Turkish Lira and Australian Dollar to new Trading Pairs

Popular cryptocurrency exchange, Binance, has added seven new trading pairs to its already exhaustive list. The new pairs are ALICE/BNB, ETH/UST, LRC/BNB, GALA/AUD, OOKI/BNB, ONE/ETH, and ATOM/TRY. Two of these new trading pairs contain fiat currencies.

Binance Adds 7 new Trading Pairs

With over 500 crypto trading pairs on its platform, Binance is one of the few exchanges with an extensive list of trading pairs. These new additions will only give more options to users of the platform. 

While some of the tokens in the new trading pairs are well known, others are fairly new. GALA, the Gala games ecosystem token, was one of the best performing cryptocurrencies of last year with over 26,000% rise in value. So, it’s not surprising that Binance is adding more fiat pairs for it.

On the other hand, OOKI, the native and governance of Ooki protocol, is a new coin. Having just been listed on Binance in December, new trading pairs seem like the next step. Ooki protocol is a decentralized protocol for DeFi and Dapps.

Another new token is Alice which was released in May 2021 for the multiplayer builder game, My Neighbor Alice. Players can buy and develop lands in the game while interacting with neighbors and performing activities. 

Launched in the height of the market, the price rose to an ATH of $42.55, but it’s currently trading below $12.

Binance also added two fiat currencies to the trading pairs with the Australian dollar (AUD) and Turkish Lira (TRY). These two options mean that Binance will see more fiat to crypto purchases for GALA and ATOM.

BNB Loses 5% in 24 Hours

With the addition of these new trading pairs, Binance is once again showing why it’s the number one crypto exchange in the world. Despite its various scuffles with authorities, the exchange has been able to maintain its lead against its competitors.

But the same can’t be said for BNB, its native token. After almost reaching a new ATH in November, the value has fallen significantly along with the rest of the market. In the past 30 days, it has lost around 21% of its value. 

Given more recent trends, its situation is not looking to change soon. BNB has suffered a 1.3% drop in 24 hours and currently trades at $447.

Loopring Rises by More Than 60% as GameStop Rumors Fuel Rally

The cryptocurrency market is currently correcting after the recent rally, but Loopring continues its recent excellent performance.

LRC Surges by More Than 60%

The crypto market has been performing excellently since the start of the month, with Bitcoin, Ether and several other coins hitting new all-time highs. However, Bitcoin is currently down by more than 2% from its all-time high, while Ether has lost more than 1% of its value over the past 24 hours.

Despite the broader crypto market currently retracing, Loopring has been performing excellently. The coin is currently the top performer amongst the leading 100 cryptocurrencies by market cap. LRC is up by more than 60% over the past 24 hours, setting a new all-time high above $3.80 a few minutes ago.

At the time of writing, LRC is up by 59% over the past 24 hours and trading at $3.78 per coin. In the past seven days, LRC has added more than 180% to its value, making it one of the market’s top performers.

Trade Crypto with eToro

The rally was caused by rumors that Loopring has partnered with GameStop on an upcoming NFT marketplace. As a result, investors and traders are taking advantage of this to get in early on the cryptocurrency. Per the rumors, GameStop (GME) is reportedly working on an NFT marketplace and will be powered by Loopring technology.

LRC/USD chart. Source: FXEMPIRE

LRC Could Reach the $5 Soon

LRC has surpassed the $3.5 pivot level earlier today and looks set to reach the $4 mark over the coming hours. This rally could allow it to aim for the first resistance level around $4.4. In the event of an extended rally by the cryptocurrency, LRC could surpass the $5 resistance point before the end of the day.

LRC’s rally has come despite the broader cryptocurrency currently retracting from its recent gains. Hence, it indicates that the LRC token could continue to surge higher in the coming hours and days as long as the frenzy around it doesn’t die down.