Launched on October 1, 2017, Loom Network is an Ethereum-based PaaS layer that enables the deployment of large-scale decentralized applications by developers.
As a platform as a service (PaaS), Loom Network facilitates the implementation of Ethereum Solidity applications via side chains. This enables the customization of consensus mechanisms to meet the requirements of particular applications and prospective threat models. Using Delegated Proof of Stake (DPoS) sidechains, Loom expedites the scaling of decentralized applications on the Ethereum network, ensuring scalability while preserving the security of the Ethereum mainnet.
The native LOOM token functions as a membership token, granting access to all Loom Network applications. For the purpose of facilitating the seamless transmission of digital assets and data between Ethereum and Loom DAppChains, this token is functional across DAppChains within the network.
The capability to interact with third-party off-chain APIs is a notable feature that enhances the platform's versatility. By facilitating seamless integration with the external environment, Loom aspires to be the ultimate platform. Utilizing Plasma, a scaling solution, the Loom Network contributes to the network's overall functionality and efficiency by expediting transaction processing.
The LOOM/USDT price soared 400% in just one month, with more room upside.
Let’s see the complete price outlook from the LOOM technical analysis.
LOOM/USDT Soared 400% In A Month
In the LOOM/USDT daily chart, the bullish impulsive pressure is clear as the recent price soared 400% from the 0.0365 double bottom level. As the current price is trading at the premium zone, more upside pressure is limited until there is sufficient downside correction.
The volume structure has a strong gap with the largest volume level. It indicates that less sellers' presence at the top could result in a bullish continuation. However, a strong bearish daily candle came after breaching the 0.1681 swing level, which is a sign of a bearish correction.
On the other hand, the impulsive bullish trend is in play, while the dynamic 20 EMA is working as a confluence support at the 0.1160 static level. Moreover, the 14-day RSI is bullish but remains at the 70.00 overbought zone.
Based on the current market outlook, a downside correction is pending, but there is no sign of a bearish reversal. As a result, investors should closely monitor how the price reacts after reaching the 0.1160- 0.0365 discounted zone, from where a bullish rebound could happen.
On the upside, the first target would be the 0.2000 psychological level, but a stable market above the 0.1957 level could increase the price even higher.
On the bearish side, a strong bearish daily close below the 0.1109 level could lower the price toward the 0.0662 high volume level.
LOOM/USDT Wyckoff Accumulation Schematic
The Wyckoff Accumulation comes after a bearish trend, where bulls try to build positions before forming a stable trend.
In the markup phase, investors might find a long opportunity from the bullish re-accumulation, from where LOOM could continue the uptrend.
This accumulation phase could support an increased buying pressure, but investors should see the price supported at the 0.1682 key support level. Also, the Parabolic SAR congestion is at 0.1464 level, which could confluence support to bulls.
The H4 RSI rebounds from the overbought area, but the Awesome oscillator (AO) suggests a positive territory for bulls.
On the other hand, taking a long entry when a coin is pumping could result in an adverse situation. Therefore, investors should closely monitor how the price reacts in the intraday key support areas.
A strong bearish H4 candle below the 0.1100 psychological level could be an alarming sign to bulls as it could lower the price towards the double top level.
LOOM/USDT Ichimoku Cloud Analysis
In the H4 timeframe, the overall market momentum is bullish as the Ichimoku Cloud zone works as strong support. Also, the future cloud is bullish, where the Senkou Span A is above B.
In the near-term price action, bears found support at the dynamic Kijun Sen, while the Traders Dynamic Index shows bearish pressure from the overbought zone.
Based on the Ichimoku cloud LOOM/USDT price analysis, an immediate bullish rebound with an h4 close above the 0.1681 level could be a long signal. However, a deeper discount is possible towards the 0.1105 static support level before reaching the 0.3000 level.
However, a bearish H4 close below the 0.1000 level could be an alarming sign to bulls, which could increase the bearish pressure towards the 0.0400 area.
Is LOOMUSDT A Buy?
Based on the current LOOM price prediction, the pump and dump scheme could reverse the LOOM price trend. However, investors should closely monitor how the price reacts to the H4 support levels to find a bullish opportunity.