Loopring Flashes Bullish Order Block Signal: Is LRC Primed for Recovery Above $0.05?

The crypto market continues its consolidation phase, with Bitcoin holding near $92.11K and Ethereum trading around $3.16K. Within this broader bearish backdrop, Loopring (LRC) is catching attention from technical traders as price action reveals an intriguing setup. Currently trading at $0.05, LRC shows a 7-day decline of 1.60% and a month-long pullback of 16.97%, mirroring the pressure felt across major cryptocurrencies.

The Liquidity Sweep Phenomenon

What’s drawing analyst interest to LRC right now is a classic institutional move known as a buy-side liquidity sweep. This pattern occurs when large players—institutions, market makers, and sophisticated traders—deliberately push prices into zones layered with stop-loss orders, triggering cascading liquidations. The goal? To collect that liquidity and potentially establish long positions at forced-sale prices.

LRC recently painted this exact scenario. The token surged into the $0.0573 zone, where accumulated stop-losses from previous holders materialized, creating a volume spike. What followed was a sharp rebound, signaling that buyers were absorbing the sell pressure at critical support levels. This behavior is textbook accumulation—when smart money uses panic selling as an entry opportunity.

Technical Levels in Focus

The present challenge for LRC lies at the $0.0623 resistance zone, which coincides with a prior swing high. Breaking above this level would confirm the bullish reversal narrative. On the downside, invalidation sits at $0.0623 area, while traders are monitoring lower targets at $0.0523 and $0.0496 if bearish momentum resumes.

The formation of a bullish order block—a price level where buy orders congregate—now marks the critical battleground. This technical structure suggests institutional buyers have positioned themselves, waiting to defend LRC from further declines.

Why the zkRollup Catalyst Matters

Beyond technicals, the fundamental argument for LRC strength centers on growing demand for zero-knowledge rollup solutions. As layer-2 scaling becomes essential for decentralized exchanges seeking faster transactions without sacrificing security, protocols like Loopring and competitors like zkSync (ZK) stand to benefit from increased adoption and network activity.

What Traders Are Watching

The immediate focus is whether LRC can consolidate above the liquidity sweep zone and establish higher lows. If buyers maintain control and push past $0.0623, the next leg higher becomes viable. Conversely, if sellers reassert pressure, the magnet for downside liquidity sits in the lower support zones.

Market participants are treating this setup as a potential inflection point—a moment where institutional activity may either validate or invalidate the short-term bullish thesis for LRC.