This article will analyze the LOOM Token according to www.coinmarketcap.com data. First, we will discuss the LOOM Token and its projects and make technical and graphic analyses. The analysis we will do in the weekly period will help the investors to take risks and manage their portfolios.
What is LOOM Token?
The Loom Network (LOOM) token is the native cryptocurrency of the Loom Network, which aims to provide developers with a scalable and high-performance platform for building decentralized applications (dApps). It leverages sidechain technology to enhance scalability and interoperability across different blockchain networks .
What are the projects of LOOM?
Projects associated with the LOOM token include :
Scalable dApp Development : The primary project of the LOOM token is its integration into the Loom Network’s infrastructure, enabling developers to build and deploy scalable dApps. Developers can use LOOM tokens as a means of accessing services, deploying smart contracts , or interacting with other features provided by the network.
Sidechain Technology : The Loom Network utilizes sidechains as a scaling solution for Ethereum- based dApps. Offloading computation from Ethereum’s mainnet onto specialized sidechains aims to improve transaction throughput and reduce costs while maintaining compatibility with Ethereum
Interoperability : The LOOM token facilitates interoperability between blockchains through its PlasmaChain technology . Using LOOM tokens as bridge assets , users can transfer assets or data between various supported chains .
Gaming & NFTs : Besides general- purpose dApp development support, Loom Network has grown significantly in gaming projects due to its scalability benefits. Some game developers utilize their infrastructure for creating blockchain-based games or implementing non-fungible tokens (NFTs) .
Factors Influencing LOOM Price
Factors that can influence the price of the Loom Network (LOOM) token include :
Market Demand and Adoption : Increasing demand for the services and infrastructure the Loom Network provides, such as scalable dApp development or interoperability solutions, could drive up the price of LOOM tokens . Higher adoption rates by developers building on top of or integrating with Loom’s technology could contribute to increased demand .
Developer Activity: The level of developer activity within the Loom Network ecosystem is an essential factor . More active developers building innovative applications, creating partnerships, or contributing to the network’s growth may positively impact sentiment toward LOOM tokens .
User Engagement and Transactions : User engagement within dApps built on top of Loom Network can affect token prices. Increased transaction volumes and user activity generally indicate a thriving ecosystem, potentially leading to higher demand for LOOM tokens .
Overall Market Conditions : General market conditions within the broader cryptocurrency space can influence LOOM token prices. Factors such as overall market sentiment, regulatory developments affecting cryptocurrencies , or macroeconomic events may impact investor confidence in digital assets, including LOOM tokens .
Competition : The presence of competing projects offering similar scalability solutions or interoperability protocols might affect Loom Network’s adoption rate and subsequently influence token prices .
Partnerships and Integrations : Announcements regarding partnerships with other blockchain platforms/ protocols or integrations with established projects could create positive sentiment around LOOM tokens and potentially positively impact their value
It is important to note that cryptocurrency markets are highly volatile , influenced by various external factors beyond those mentioned above; therefore, conducting thorough research and staying updated with official sources when considering investments related to specific cryptocurrencies like LOOM Tokens is advisable
LOOM TOKEN TECHNICAL ANALYSIS
After seeing its historical high of $ 0.2644 in March 2021, LOOM dropped 85% by the end of 2022, down to $ 0.0395. Although it went up to $ 0.1389 with the purchases in the market in March 2023, it is currently trading at $ 0.0433. According to www.coinmarketcap.com data, LOOM has a size of $52,572,129 and a volume of $3,079,879 in the last twenty-four hours .
LOOM Token Chart Analysis
From March 2021 to the end of 2022, the LOOM token fell 85% from $0.2644 to $0.0395. Although LOOM, which started to rise at the beginning of 2023, went up to $ 0.1389 in March, it could not maintain this rise and fell again and is currently trading at $ 0.0433. When we examine the weekly chart, we see that the LOOM token is trying to stay above the $0.0395 support. As long as it stays above this support, the first resistance zone for the LOOM token will be $0.0572.
This article does not certain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their research when deciding. This article does not include investment advice or suggestions. Every investment and trading move involves risk, and readers should perform their analysis when determining.