Latest Loopring (LRC) Price Analysis

By CMC AI
02 October 2025 02:18AM (UTC+0)

Why is LRC’s price up today? (02/10/2025)

TLDR

Loopring (LRC) rose 6.79% over the last 24h, outpacing the broader crypto market’s 3.84% gain. Key drivers include bullish technicals, anticipation around a partner token unlock, and increased leverage accessibility.

  1. Technical Breakout – Price broke key resistance, signaling bullish momentum.

  2. WLFI Token Unlock Hype – Indirect link to Dolomite (using Loopring’s tech) fueled speculation.

  3. Leverage Adjustments – Binance lowered LRC’s collateral ratio, boosting trading activity.


Deep Dive

1. Technical Breakout (Bullish Impact)

Overview: LRC broke above the $0.0900 resistance level, confirming a bullish breakout from a falling wedge pattern. The 24h trading volume surged 95% to $19.7M, with open interest rising 9.3%, signaling strong market participation.

What this means: Technical indicators like the RSI (56.64) and MACD convergence suggest growing bullish momentum. A sustained hold above $0.0900 could target the next resistance at $0.1043 (23.6% Fibonacci level).

What to look out for: A close below $0.0900 may invalidate the breakout, with support near $0.0788.


2. WLFI Token Unlock Hype (Mixed Impact)

Overview: LRC and Dolomite (DOLO) rallied ahead of World Liberty Financial’s (WLFI) token unlock on September 1, 2025. Dolomite, a DeFi platform built on Loopring’s protocol, saw a 115% monthly gain, driving indirect optimism for LRC.

What this means: While LRC’s connection to WLFI is indirect, traders speculate on network effects from Dolomite’s growth. Santiment data shows LRC’s price-to-DAA divergence at 175.97%, indicating price gains are backed by rising user activity.

What to look out for: Post-unlock volatility – WLFI’s 20B token release could trigger profit-taking, spilling over to LRC.


3. Lower Collateral Ratios (Bullish Impact)

Overview: Binance reduced LRC’s collateral ratio for Portfolio Margin from 40% to 25% on August 8, 2025, making it cheaper to trade with leverage.

What this means: Lower collateral requirements typically increase speculative trading volume. LRC’s 24h turnover ratio of 0.16 (vs. market average ~0.05) confirms heightened liquidity and trader interest.


Conclusion

LRC’s rally reflects a mix of technical momentum, speculative hype around ecosystem partners, and improved leverage access. While bullish signals dominate, the WLFI unlock and broader market sentiment pose near-term risks.

Key watch: Can LRC hold above $0.0900, and how will Dolomite’s performance post-WLFI unlock impact sentiment?

Why is LRC’s price down today? (30/09/2025)

TLDR

Loopring (LRC) fell 3.16% over the last 24h, underperforming the broader crypto market (-0.41%). The decline aligns with bearish technicals and project-specific headwinds. Here are the main factors:

  1. Leadership Uncertainty – CEO resignation sparks protocol stability concerns

  2. Technical Breakdown – Price struggles below key resistance ($0.0869 pivot)

  3. Altcoin Weakness – Capital rotates to Bitcoin as Altcoin Season Index drops 15%


Deep Dive

1. Leadership Shakeup (Bearish Impact)

Overview: Loopring’s CEO resigned on August 30, 2025, citing scaling and liquidity challenges (@yoyodexnews). This follows July’s sunsetting of DeFi products like Dual Investment to prioritize Layer 2 decentralization.

What this means: Leadership gaps often trigger investor skepticism about execution risks. The protocol’s pivot away from revenue-generating DeFi products could delay ecosystem growth, reducing near-term token utility.

What to look out for: Interim leadership announcements or developer retention metrics in Q4 2025.


2. Technical Resistance Holds (Bearish Impact)

Overview: LRC faces stiff resistance at its 30-day SMA ($0.0941 vs. current $0.0841). The MACD histogram (-0.00082682) confirms bearish momentum, while RSI 14 (45.17) shows no oversold relief.

What this means: Traders are selling into rallies near the $0.0869 pivot point. Until LRC reclaims this level, technical traders may avoid entries, exacerbating downside pressure.

Key level: A sustained break above $0.087 (38.2% Fib retracement) could signal reversal potential.


3. Altcoin Sentiment Erodes (Mixed Impact)

Overview: Bitcoin dominance rose to 58.26% (+0.49% in 24h) as the Altcoin Season Index fell 15% – capital favors perceived safety.

What this means: LRC’s -3.16% drop outpaced the average altcoin’s -1.2% decline (per CoinMarketCap data), suggesting coin-specific weakness compounds sector-wide outflows.


Conclusion

Loopring faces a confidence crisis from leadership turnover and delayed product roadmaps, amplified by traders’ technical caution and altcoin apathy. While LRC’s zkRollup tech retains long-term potential, the 24h drop reflects valid near-term risks.

Key watch: Can LRC stabilize above its 7-day SMA ($0.0835) to prevent a retest of August’s $0.073 support?

CMC AI can make mistakes. Not financial advice.