Well-known crypto strategist Nicholas Merten is closely watching a decentralized finance (DeFi) presence, which he says has the potential to double its value in the coming days.
Merten points out that the DeFi coin Loopring (LRC) has consolidated in preparation for the next move, to 378,000 YouTube subscribers in a new DataDash episode.
“In the technical sense here, the price action looks good. We have lower hills, higher bottoms. We are building towards a consolidated wedge. As we passed through the space here, the volume decreased. It will be a matter of seeing if we can get a breakout ($ 0.45) here in the next week, above this resistance line and really start climbing here. This is the kind of technical models you are looking for in altcoin cycles.
In addition to Loopring’s promising technical setup, the trader explains why the project has strong fundamentals.
“Loopring is a decentralized exchange or more specifically an automatic market maker. It allows you and I to interact with smart contracts and trade without the need for a centralized exchange and at any time of the day without any interruptions, possibly paying lower fees than most exchanges. He can exchange the first asset I have for another asset and immediately buy it into my wallet. ”
Merten adds that Loopring is a pioneer when it comes to implementing second layer solutions.
“For those who don’t know what ZkRollups is, it’s not a problem. At the end of the day, to keep it simple, concise and to the point, it is a second layer scaling format that allows you to do a lot of computing activity on the Ethereum chain and save costs. Generally, this means that we can have extremely cheap transactions to trade on a platform like Loopring, fractions of a cent, and also have the same securities on the Ethereum network that you would have on the chain. “
The crypto analyst also emphasizes that the total value (TVL) locked in Loopring is also up.
“The total value locked here has continued to increase since the beginning of the year, with more than threefold increase here. This is really exciting for me personally. I love seeing this kind of growth in general. If I want to keep my trust in Loopring, I want to continue seeing this growth. “
Merten said he expected the DeFi crypto asset to rise to $ 1.00 in early February, representing an increase of about 130% from its current value of $ 0.44.