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Is Loopring (LRC) a good buy in January 2022?

By:
on Jan 10, 2022
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  • LRC remains in a bear market
  • $1 represents strong support
  • Loopring announced a new VIP system

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Loopring LRC/USD is trading this Monday below $1.5, and probably it is not the best moment to buy this cryptocurrency.

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The cryptocurrency market remains under pressure, and if Bitcoin falls below the $40000 support, it would add further pressure to the whole cryptocurrency market.

Payment protocol

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Loopring is an open-sourced non-custodial exchange and payment protocol that allows low-cost trading and payment on Ethereum.

The security and sovereignty of user assets is Loopring’s top priority, while the team behind this project believes in a digital economy where users are empowered and always in control of their assets.

On Loopring protocol, exchange and payment applications simply cannot go wrong, and it is important to say that nobody stands between a user and its Ethereum-based assets.

Loopring can process thousands of requests off-chain with verifiably correct execution and achieve transaction costs that are small fractions compared to on-chain costs.

Loopring deployed the first zkRollup protocol on Ethereum, which does not rely on any external validators, consensus, or crypto-economic assumptions.

According to its official website, zkRollup is the most secure scaling mechanism the industry knows for now, and it enables users to access their assets in all circumstances. zkRollup has the same non-custodial security as Ethereum, but it can achieve much higher throughput.

Loopring Wallet is an Ethereum mobile smart contract wallet that provides a secure, intuitive, and powerful experience in your pocket. It allows you to send payments to anyone, anywhere, while you can also make swaps, trade on the books, and invest & earn in DeFi.

LRC is the utility token of Loopring protocol, and LRC incentivizes protocol-desirable behavior from insurers, liquidity providers, and DAO governors.

Liquidity providers earn a 0.2% fee from all trades in the pools they provide liquidity to, and you can become a liquidity provider by depositing an equal value of both assets in the pool.

Loopring recently announced a new VIP system that will better integrate and align LRC tokens into the Loopring ecosystem. Loopring founder Daniel Wang said:

VIP users can now enjoy a ramped-up discount on fees, up to a minimum fee of only 0.1%. In addition, makers can trade for free and also enjoy a 0.02% commission rebate on their transaction volume.

LRC remains in a bear market

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Technically looking, Loopring (LRC) remains in a bear market, and if you decide to buy this cryptocurrency in January 2022, you should use a “stop-loss” order because the risk remains high.

Data source: tradingview.com

The firm support level stands at $1, and if the price falls below it, the next price target could be around $0.8 or even below.

The strong resistance level stands at $2, and if the price jumps above this level, it would be a “buy” signal, and we have the open way to the $2.5.

Summary

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Loopring (LRC) is trading down more than 60% from its record highs registered in November 2021, and the risk of further decline still persists. The firm support level stands at $1, and if the price falls below it, the next price target could be around $0.8 or even below.

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