LOOM surges over 55% in a week, analyst suggests manipulation
LOOM surges over 55% in a week, analyst suggests manipulation
Admin 13 Oct, 2023

The price of Loom Network’s native LOOM token has seen significant gains over the past week, surging over 55% to $0.2667.

This marks the highest price LOOM has reached since its all-time high of $0.6834 in early 2018.

Loom Network is a layer-2 scaling solution originally built for Ethereum (ETH) that has since pivoted to focus on enterprise blockchain solutions. The network uses a delegated proof-of-stake (DPoS) consensus model and aims to improve blockchain scalability and usability through features like Plasma sidechains.

While LOOM is still down nearly 61% from its record high in 2018, the recent price run has sparked renewed interest in the previously overlooked project. No apparent announcements would explain the recent price rise, suggesting that the movement is completely attributable to market forces.

According to an Oct. 13 analysis by YouTube crypto analyst Cilinix, the recent price movement of LOOM appears to result from manipulation, given the lack of fundamental news driving the surge.

Cilinix notes that heavy trading volume from exchanges like Upbit is often a sign of artificial price inflation. However, in the short term, manipulation could continue pushing the price higher.

Cilinix identifies $0.32 as the next target if the momentum continues, corresponding with the Fibonacci extension level. However, LOOM needs to hold support at $0.225 to remain bullish. A break below this level would likely signal a reversal and crash back to $0.10.

For now, Cilinix suggests experienced traders closely watch $0.30 on the upside and $0.225 on the downside for signs of which direction LOOM may break. Caution is warranted, given the likelihood of manipulation driving recent gains.