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Expert Analysis: Loom Network Potential for a Second Rally – Analyzing the Momentum

Weekend Momentum and Loom's Future

Current State of the Crypto Market: Factors Influencing Loom Network

Current State of the Crypto Market: Factors Influencing Loom


The Potential for a Second Rally: Understanding Loom’s Current State

Loom has been showing some promising signs. It initially gained momentum, but then it pulled back due to some bearish pressure from Bitcoin. Today, however, it’s displaying renewed strength. It recently broke above the 28 EMA (Exponential Moving Average), which is an interesting development.

Analyzing the Likelihood of a Rally: Key Levels and Resistance

Now, I want to make it clear that, in my opinion, we’re not quite at the point where we can confidently declare this a rally. However, I do believe there’s a real possibility that Loom may experience one, and that’s precisely why I decided to discuss it today. But I want to hear from you – if you don’t find this valuable, please be honest, and I’ll consider your feedback for future videos.

The Crucial Levels and Liquidity: Will Loom Get the Boost It Needs?

Let’s dive into the analysis. First and foremost, the big potential for Loom is the chance of a second rally. When a cryptocurrency experiences a significant manipulated rally, there’s often a chance of a smaller subsequent rally. If Loom were to make a move up to 20 cents, that would be a significant gain, nearly 100%. However, when compared to the initial rally, it wouldn’t be as substantial.

But here’s the big question – will it rally again? Breaking above the 28 EMA is a start, but the key level we discussed in a previous article is 12.5 cents. This level holds psychological significance and coincides with the 50 EMA. Just above that, there’s another resistance level around 13.5 cents, which might pose a challenge.

Liquidity Levels and Short Squeeze Potential: Understanding Loom Network Chart

Support and Resistance Levels: Understanding Loom's Chart

Understanding Liquidity: The Key to a Potential Short Squeeze

Apart from that, I wanted to explore the liquidity levels for Loom. Having substantial liquidity at higher levels could fuel a powerful move upwards. Unfortunately, most of the liquidation levels for Loom are around 9 cents. This isn’t ideal because having a lot of liquidity higher up could potentially trigger a short squeeze. There’s some liquidity around 11.5 and 12 cents, but it’s not significant.

The Importance of Open Interest and Volume: Indicators of Bullish Momentum

Now, I understand this is a lot to take in, but it’s essential for a thorough analysis. Moving on, the open interest has been on the rise, and the trading volume is also increasing. This is quite bullish and one of the primary reasons I decided to make this video. Loom needs momentum, and in my book, momentum is determined by the amount of trading activity and the number of open positions, represented by open interest and volume, respectively.

Outlining the Rally Scenario: Price Targets and Factors to Watch

For a real rally to happen, Loom needs to break above 12.5 cents, then find support at this level after a retest for confirmation. If this occurs, it has the potential to rally. The first price target would be 15 cents, and the second at 17 cents. From there, we’ll have to reassess.

Open Interest and Trading Volume: Bullish Signals for Loom

Factors Influencing Loom’s Fate: Open Interest and Bitcoin’s Role

Now, whether this scenario will play out remains to be seen. It hinges on the open interest. If it continues to increase, the chances of a rally are higher. However, if open interest suddenly drops and Bitcoin takes a dive (which is always a possibility), the rally might not materialize. In that case, Loom could ascend but likely face resistance and gradually decline back towards the liquidity levels around 9 cents, and possibly even as low as 8.5 and 7.82 cents.

The Importance of Timing: The Weekend and Loom’s Momentum

The critical factor is the momentum it gathers today. During the weekend, it’s possible that there won’t be enough momentum or volume to support a rally. We’ll have to wait and see how the day unfolds.

Loom Network Technical Analysis: Key Indicators and Trends


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