Mdex (MDX) and Loom Network (LOOM) Crypto Prices Pumping: Why Now Isn’t a Good Time to Buy the Tokens
The cryptocurrencies Mdex (MDX) and Loom Network (LOOM) have experienced notable price surges today, with MDX climbing over 50% and LOOM increasing by more than 10%. However, our price analyses reveal that now may not be an ideal time for investors to buy into these tokens.
We’ll examine each cryptocurrency’s situation thoroughly:
What you'll learn 👉
MDX (MDex) Begins to Recover
MDX, the native token of the MDex decentralized exchange protocol, has seen its price plummet since mid-March, dropping from around $0.09 to its current level of approximately $0.05. After a prolonged downtrend, the price appears to have reached a local bottom and began recovering yesterday.
MDex, launched in January 2021, is an automated market maker (AMM) decentralized exchange operating on the Ethereum and Huobi Ecological Chain (HECO) networks, benefiting from the liquidity of the Ethereum ecosystem.
Should MDX Investors Be Excited?
Despite the recent price pump, MDX’s technical indicators suggest caution. The price recently hit the bottom of a descending channel it has been trading within since March, and this bounce could be brief, as seen in other cryptocurrencies after testing support levels without any strong fundamental.
The relative strength index (RSI) of 43 indicates that sellers remain in control, and any buying decisions should be well-calculated. Additionally, the price remains well below the 50-day and 200-day simple moving averages, which could act as resistance levels.
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Show more +While a significant fundamental development could potentially drive prices higher, defying the current bearish technical analysis, traders should exercise caution when considering buying MDX at this point. Captain Altcoin’s Mdex token forecast for 2024 and 2025 can also guide your decisions.
LOOM Network Price Action Is Similar to MDX
LOOM’s price action mirrors MDX’s, trading within a descending channel despite the recent bullish move. Loom Network, a platform-as-a-service built on Ethereum for developing decentralized applications, was released on October 1, 2017.
Like MDX, LOOM’s price remains far below the 50-day and 200-day simple moving averages, which could act as resistance levels. The RSI of 40 indicates that sellers are firmly in control.
While MDX and LOOM have experienced price pumps, their overall technical analysis suggests a continued bearish trend. These spikes do not appear propelled by major news or increased on-chain activity but rather normal price action.
As both cryptocurrencies remain strongly bearish, traders should exercise caution when considering buying positions. Long-term investors may need to consider additional factors to better time their entries and determine their holding period rationale.
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