Loom Network token rebounded sharply on Thursday as open interest in the futures market continued. The token soared to a high of $01575, a few points below the year-to-date high of $0.1677. It has risen by more than 320% from the lowest level in September.
Loom Network, a blockchain that has a seamless integration to Bitcoin, Ethereum, and Binance Chain, has done well in the past few weeks. The rally continued in September after a major exchange listed the token. Gate.io, one of the biggest exchanges in the world, listed the coin in September.
🔥 https://t.co/8kWqgEeplL New Listing: @loomnetwork
💎 Trading Pair: $LOOM / $USDT
💎 Trading Starts: 12:00 PM, Sep 25 (UTC)
✅ Trade: https://t.co/whRS1ml9pQ
Details: https://t.co/IbFUHqArsQ #Gateio #Newlisting #LOOM pic.twitter.com/nYLmW2ZmJY
Still, a look at Loom network shows that the number of new addresses in the ecosystem has crashed to the lowest level since September 24th. At the same time, the number of transactions in the ecosystem has also dropped sharply, as shown below.
Loom Network transactions and addresses
Therefore, the Loom Network price is rising likely because of increasing buying pressure. Data by CoinGlass shows that futures open interest rose to more than $44 million, the highest level on record. This open interest is just from Bybit, the only company that provides Loom Network in its ecosystem.Â
Meanwhile, according to CoinMarketCap, the volume of LOOM being traded in exchanges is rising. The volume jumped by more than 139% in the past 24 hours to more than $169 million. Most of this volume is coming from Upbit followed by Binance.
Loom Network price forecast
The daily chart shows that the LOOM price has been in a strong bullish trend in the past few weeks. It rose above $0.077, the highest point on July 14th It has also jumped above the key resistance at $0.1432, the highest swing in March this year.
LOOM has moved above the 50-day and 100-day moving averages while the Relative Strength Index (RSI) has moved to the overbought level. Therefore, the outlook for the Loom Network price will retest the resistance at $0.1677, the highest point in September.Â
If this happens, it will validate the double-top pattern, leading to a strong pullback as sellers target the neckline at $0.1118, the lowest point on Tuesday.
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