Top crypto strategist Nicholas Merten says the decentralized finance (DeFi) exchange Loopring has the potential to take off in the coming days.
Speaking in the latest episode of DataDash, Merten told his YouTube subscribers to keep an eye on Loopring, predicting its value could more than double in the short-term. He said LRC appeared to be consolidating on the trading charts in anticipation of another price leap.
He said,
In the sense of technicals here, price action looks good. We’ve got lower highs, higher lows, building towards a consolidated wedge. Volume has faded as we’ve gone through the wedge here. It’s going to be a matter of seeing if we can get a breakout here ($0.45) over the next week or so, above this line of resistance and really start climbing up here.
Merten said LRC’s chart was a perfect example of what investors should be looking for in altcoin cycles, with the underlying project showing strong fundamentals. He outlined the platform as an automated market maker that would allow traders to interact via smart contracts and swap between multiple tokens.
He also highlighted the project’s zkRollup layer-two solution.
He continued,
For those of you who don’t know what zkRollups are, it’s not a problem. It’s a form of layer-two scaling that at the end of the day, to keep it simple, short, and to the point, allows you to do a lot of computational activity off the Ethereum chain and sav[e] on the cost in this case.
Merten said LRC offered cheap transactions at a fraction of a penny in order to conduct swaps while providing a similar level of security as a flagship project such as ethereum.
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