On Feb. 15, the LOOM price reached a high of 377 satoshis and began to decrease. The price bounced on Feb. 25, indicating that the retracement period is complete.
Loom Network (LOOM) Price Highlights
- The price broke out from a descending wedge.
- It is trading above significant daily moving averages (MA).
- There is resistance at 450 and 800 satoshis.
- The weekly RSI is bullish.
Crypto trader @CryptoWarrior01 outlined a LOOM chart that shows a breakout and subsequent validation of the resistance line. The outlined future movement shows a continuation of this upward move toward 315 and eventually 580 satoshis.
Very nice backline test off downtrend break. Flipping that MACD up bull and start of a new HL trend of PA and RSI….I'll bite! Try me, lets go $LOOM #LOOM pic.twitter.com/fukffrWbwY
— JustSumCryptoDude (@CryptoWarrior01) March 3, 2020
Will the LOOM price reach its target? If not, where will it go to instead? Continue reading below if you are interested in finding out.
Wedge Breakout
On Feb. 2, the LOOM price broke out from a descending wedge. The price increased for the next 12 days, reaching a high of 377 satoshis on Feb. 15, but has been decreasing ever since. LOOM returned to validate the breakout level in a picture perfect retracement on Feb. 25 and began the current upward move.
Even though the price has created a lower high relative to Feb. 15, the directional bias remains bullish, mostly because of the price’s relationship to its daily moving averages.
The price is trading above both the 50- and 200-day MAs, which are very close to making a bullish cross. If that were to occur, it would confirm that LOOM is in an upward trend.
Long-Term Outlook
The long-term outlook is similarly bullish, since the weekly RSI has been generating bullish divergence since September 2019. But, it has yet to move above the 50-line, which would confirm that the price is in a bullish upward trend.
The price is also following a descending resistance line, from which we believe the price will break out. If it does, the next resistance areas are found at 450 and 800 satoshis, respectively.
There is a confluence of factors in play that if they were to occur, it would suggest the price has already begun a bullish trend. A significant price increase would likely cause all three of the following:
- Breakout above the long-term descending resistance line.
- Bullish cross between the 50- and 200-day moving averages (MA).
- Weekly RSI movement above 50.
This would remove all doubt that LOOM has begun a bullish trend and the movement toward the next resistance area is underway.
To conclude, the LOOM price has broken out from a descending wedge and has validated it as support. We believe the move is likely to continue and the price is expected to eventually reach 450 satoshis.
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