Well-known crypto analyst Nicholas Merten is closely watching a decentralized finance (DeFi) presence, which he says has the potential to double its value in the coming days.
According to a Daily Hodl report, Merten points out to 378,000 YouTube subscribers in a new DataDash episode that decentralized financial exchange Loopring (LRC) is preparing for the next move:
“Technically speaking, the price action looks good. We have lower hills, higher bottoms, we are building towards a consolidated wedge. As we passed through the space here, the volume decreased. We will be able to see if we can get a breakout ($ 0.45) here in the next week, above this resistance line and really start climbing here. This is the kind of technical models you’re looking 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 automatic market maker. It allows you and I to interact with smart contracts and trade without the need for a centralized exchange and at any time of the day without any interruptions, exchange the first asset you have for another asset and immediately get into your wallet, and possibly pay lower fees than most exchanges. “
Trader adds that Loopring is ahead when it comes to implementing second tier solutions:
“For those of you who don’t know what ZkRollups is… This is a second layer scaling that keeps it simple, short, and accurate at the end of the day. It allows you to do a lot of computing activities outside of the Ethereum chain and in this case save costs. Generally this means that you can perform extremely cheap transactions on a platform like Loopring and also to the same assets that are in the Ethereum network means you can have it. “
The cryptocurrency analyst also points out that the total value locked in Loopring (TVL) is also constantly increasing:
“The total value locked here has continued to increase since the beginning of the year. It’s more than three times… It’s really exciting for me personally. I love seeing this kind of growth in general. If I want to keep my confidence in Loopring, I want to continue seeing this growth. ”
Merten said he expects the DeFi asset to rise as high as $ 1 in early February, which represents an increase of about 130% from its current value of $ 0.44.