Prominent crypto strategist Nicholas Merten is keeping a close watch on a decentralized finance (DeFi) asset that he says has the potential to more than double its value in the coming days.
On a new DataDash episode, Merten points out to his 378,000 YouTube subscribers that DeFi exchange Loopring (LRC) is consolidating in preparation of the next move up.
“In the sense of technicals here, price action looks good. We’ve got lower highs, higher lows, building towards a consolidated wedge. Volume has faded as we’ve gone through the wedge here. It’s going to be a matter of seeing if we can get a breakout here ($0.45) over the next week or so, above this line of resistance and really start climbing up here. This is the kind of technical patterns you look for in altcoin cycles.”
In addition to Loopring’s promising technical setup, the trader explains why the project has strong fundamentals.
“Loopring is a decentralized exchange, or more specifically an automated market maker. It allows you and I to be able to interact with smart contracts and swap between one token to another without the need of a centralized exchange and with the ability to trade anytime of the day without any downtime and probably pay lower fees than most exchanges while being able to trade the initial asset I own to another asset and receive it immediately to my wallet.”
The trader adds that Loopring is ahead of the curve when it comes to the application of layer-two solutions.
“For those of you who don’t know what zkRollups are, it’s not a problem. It’s a form of layer-two scaling that at the end of the day, to keep it simple, short, and to the point, allows you to do a lot of computational activity off the Ethereum chain and sav[e] on the cost in this case… Overall, this means we can have extremely cheap transactions, fractions of a penny in order to make a swap through a platform like Loopring while also being able to have practically the same exact securities you will have on chain on the Ethereum network.”
The crypto analyst also highlights that the total value locked (TVL) in Loopring is also on the up and up.
“The total value locked up here has continued to rally since the beginning of the year, more than tripling here which is really exciting to me personally. I love seeing this kind of growth overall. I want to continue to see this growth if I want to continue to maintain my confidence in Loopring.”
Merten says he’s expecting the DeFi crypto asset to climb all the way up to $1.00 in early February, representing an ascent of nearly 130% from its current value of $0.44.
I
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxFollow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Art Furnace
