Loopring. Pros and cons
Assets covered: Loopring (LRC)
Metrics used: Social Dominance, Network Growth, Daily Active Addresses, Exchange Inflow, Active Deposits, MVRV, Holders Distribution
Loopring has been mentioned quite a lot in crypto social media on Thursday. Perhaps because of GME earnings thread and some rumours like this:
We had a pretty big spike in social dominance on Thursday. Perhaps because of that reddit threads:
Now the hype went down, so it's ok.
600 new LRC addresses interacting with blockchain is quite decent. Daily Active Addresses are close enough and moving in a healthy direction.
Exchange related metrics
Exchange inflow spikes spotting the tops pretty clear, now surging, indicating some people are selling.
Active deposits showing the same, a new sell side pressure is happening. It explains why we are correcting at the moment of writing this.
This metric is under water. And close to its first 'support' level at around –13%:
Slightly oversold here, good.
A group holding from 100,000 to 1,000,000 LRC seems to be 'smart money'. Dumping right before the top, then ok buying a little bit too early. This group is probably the most representative of whale sentiment. And they generally seem to have dumped a little bit. Would be nice to see a very strong wave of whale confidence but it's not really shown on a chart at the moment of writing this.
So, we've got low MVRV, we do have some people selling. Not bad! On the other side there are some slightly concerning signs in terms of whales dumping and some of sell side pressure rise. Network levels look decent overall.
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.