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Altcoin Sherpa, an anonymous crypto analyst, has issued a warning about Loom Network (LOOM), a small-scale altcoin that has experienced triple-digit growth in the past month. The analyst believes that the rapid rise in LOOM has come to an end and expects a decline. Additionally, the analyst predicts an upward trend for the leading cryptocurrency Bitcoin (BTC).
Loom Network’s LOOM Faces Sharp Decline
Altcoin Sherpa stated that Loom Network’s native cryptocurrency LOOM, which is built on a platform for decentralized applications (dApps), has started to decline after experiencing a strong surge of 285% in the past 30 days. LOOM reached its peak around $0.0462 on September 19 and has since dropped to $0.20 this week.
The analyst added that LOOM could have a modest rise in the short term before continuing its downward trend, as there is no strong support to sustain its price. The chart shared by the analyst indicates that the altcoin could bounce around $0.19 and reach approximately $0.28 before sharply declining below $0.19.
Bitcoin Expected to Reach $30,200 in the Short Term
Altcoin Sherpa, who also analyzed Bitcoin, predicted an upward movement in the leading cryptocurrency. The analyst stated, “I believe BTC will rise to higher levels and fill the gap caused by this inefficiency (a significant rise in price followed by a rapid decline with long wicks and shadows). $30,200 is a million-dollar level. Negative funding, you know what that means… I still don’t have a clear idea of where BTC will go in the medium term.”
The negative funding rate mentioned by Altcoin Sherpa indicates that there are more short positions than long positions in Bitcoin, which some traders consider as a bullish signal. In such situations, a short squeeze, where short positions are rapidly liquidated, often occurs, leading to a rapid price increase.
