LooksRare price recovery has wings and could double again as profit-hungry investors migrate from BLUR
|- LOOKS price has risen nearly 12% in under 12 hours, showing resilience to selling pressure.
- This development comes as many altcoins have lost double-digit gains in the last two to three days.
- On-chain metrics reveal investor interest and whale activity during the recent pullback, hinting at potential accumulation.
After Blur’s 300% rally, the next NFT token that has grabbed traders’ attention seems to be LooksRare’s LOOKS altcoin. LOOKS price has rallied 12% in the last nine hours and shows promising signs of continuing this uptrend.
Also read: Dogecoin price might recover losses if volume picks up
LooksRare price ready to shoot higher
LooksRare (LOOKS) price rallied nearly 100% between November 21 and 24. This uptrend retraced to $0.101, which was in line with the overall market sentiment. Unlike many altcoins, LOOKS has found support here and has bounced nearly 12% at the time of writing and shows no signs of stopping.
A sustained move higher would push it to the next weekly hurdle at $0.123. Successfully flipping this barrier into a support floor would allow LooksRare price to tag $0.202, which would append its gains from 100% to 200%.
This move would bring it close to $0.218, which is the 50% retracement level of the 88% crash witnessed between February 2023 and June 2023.
Also read: Bitcoin price sees flat performance as correlation with equities is on the rise
LOOKS/USDT 1-day chart
Read more: MATIC price trend turns bearish with nearly $20 million worth of token transfers to exchanges
On-chain metrics support LOOKS recovery bounce
LooksRare price rally is supported by a massive spike in active addresses and volume. An uptick in these two indicators indicates that sidelined buyers are interested in LOOKS at the current price level.
This is confirmed by the Whale Transaction Count index, which tracks transfers worth $100,000 or more. A spike in this metric coincides with the recent pullback, which reveals a buy-the-dip activity.
LOOKS active addresses, volume, whale transaction count
After the recent drop, the 30-day Market Value to Realized Value (MVRV) ratio has reset to zero from a peak of 42%. This index is used to track the average profit/loss of investors who purchased LOOKS in the past month.
Since the indicator has slid from 42% to 0%, it shows that investors have booked profit and that it is safe to accumulate the token again.
LOOKS 30-day MVRV
While the bullish outlook of LOOKS price is logical, a further drop in Bitcoin price could send the altcoin crashing again. Most of the altcoins have rallied heavily in the past two to three weeks. Hence, a sudden crash in Bitcoin price could send these altcoins spiraling down.
In this case, if LOOKS price breaks the $0.094 support level, it would create a lower low and signal a breakdown on a weekly timeframe. This move would invalidate the bullish thesis and potentially crash LooksRare price to $0.068.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.