With Loopring [LRC] flashing green, is Q2’s turbulence behind it

ambcrypto.com:

Loopring [LRC], the zkRollup layer2 on Ethereum [ETH], which intends on making the blockchain more accessible, continues to push its development. However, on the investor front, this network doesn’t seem to be making any strides. In fact, the beginning of July has marked one of the worst days for the LRC token.

As the third quarter of 2022 began, Loopring investors made a statement by indulging in selling their LRC supply, which amounts to almost $11 million. 

Loopring selling | Source: Santiment – AMBCrypto

This move can be considered as an after-effect of the bearish market which for a second brought LRC close to its recent lows. At press time, the token stood at $0.41 with the Relative Strength Index (RSI) just below the neutral 50 line. The Awesome Oscillator, too, flashed green bars. 

Source: TradingView

But the fear of losses triggered the investors to sell their HODLings. Furthermore, analyzing the scenario from an investor’s perspective, 1 July was one of the highest loss-bearing days for Loopring. Approximately $22.17 million worth of LRC supply fell into losses on 1 July.

Loopring supply in loss | Source: Santiment – AMBCrypto

Consequently, it pushed investors to take the route of selling and escaping. However, this move can’t be called as an exit since the total number of LRC addresses has not declined yet. This is because a significant portion of the selling came from the cryptocurrency’s ‘loyalists’, or long-term HODLers. 

This cohort of investors moved the supply they had held on to for a period of more than 12 months. This is verified by the fact that within 24 hours, more than 30.5 billion days were consumed, making it the third-highest such instance in Loopring’s history.

Loopring LTH selling | Source: Santiment