Cryptocurrency
by Seth Parker on August 7, 2018

Loom Analysis – Back to the lows

Third piece of the day is about the Loom. We wrote a piece about this coin in the end of July, when the price was breaking the down trendline. Although in theory, that should be positive but we were not convinced about the proper trend reversal:

“According to the technical analysis, if trend suppose to be reversed, we should see much stronger upswing. After the breakout, the price entered a very flat sideways trend, which shows us that there is no demand here. The buy signal is not here and the price should continue to go down. „

loom chart

Today, the price is lower than it was then so the trend reversal did not happen. The thing is that in the meantime we had a bullish correction, which pushed the price to 0.30 USD! The optimism did not last too long. Demand was weak and allowed the price to fell down to the lows from the end of June. Current sentiment stays negative. The price is below the static resistance (orange) and a dynamic down trendline (green) – all that is negative and points south. With all this, we should see a further drop relatively soon.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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