The cryptocurrency LOOM has seen a massive sell-off in recent days, plunging over 35% in value in the past 24 hours. Crypto analysts had predicted the crash, and some believe further losses may occur before a recovery.
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Analyst Forecasts 70% Crash
On October 15th, a prominent crypto trader with more than 100,000 followers on X @GVRCALLS predicted on Twitter that LOOM would fall 70% in the next 3 days. At the time, LOOM was trading around $0.30.
True to the prediction, LOOM crashed below $0.20 within 72 hours. @GVRCALLS had called the top and warned followers of the impending dump.
Dump Hits Target Price
After the initial crash, @GVRCALLS gave an update that LOOM had hit his target price of $0.11, from which he expects a reversal. The analyst congratulated anyone who followed his call and shorted LOOM.
The cryptocurrency fell over 65% from the time of @GVRCALLS’ initial warning, almost reaching his forecast of a 70% plunge.
A Chart Pattern That Preceded Crash
Fellow crypto trader @CryptoTony__ had also pointed to a technical head and shoulders pattern that preceded LOOM’s crash. @CryptoTony__ profits on a short position after LOOM broke the neckline support. He intends to be in a short position until the price reaches $0.072, which he regards as the breakout point.
Reasons Behind the 35% Plunge
Loom experienced a consistent price increase from September 10 to October 15, rising from $0.04 to $0.5, a whopping 1150% increase. The drop in price could be expected, as those who bought the crypto before or at the beginning of the rally in September will now be taking their profits. As these traders exit the market to secure profits, the price has no choice but to start plunging.
Expert crypto analysts anticipated this fall in price, with traders like @GVRCALLS warning his followers of the impending dump days before it started to fall. @CryptoTony__ also identified a head and shoulders pattern, which occurred before the price started to decline.
What’s Next For LOOM?
With the steep sell-off shaking out weak hands, analysts are now looking for signs of a reversal. @GVRCALLS sees $0.11 as a key level where LOOM could start to bounce back. Crypto Tony, on the other hand, is confident about shorting until the price gets to $0.072.
But more losses could still be in store before a sustained recovery kicks in. The crypto community will be monitoring LOOM closely to see if the breakdown continues or if bulls can spark a trend change.
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