Bitcoin price may have taken a temporary breather, but the sharp correction below $ 30,000 did little to discourage the bullish sentiment of crypto market participants.

The CME Bitcoin futures market hit a record volume of $ 2.7 billion on January 4 and LMAX Digital also hit a record high of $ 2.62 billion in traded volume on the same day. This massive increase in trading activity suggests that institutional investors are continuing to invest in Bitcoin (BTC).

Crypto market data daily view. Source: Coin360

Due to institutional adoption, analysts believe that Bitcoin could soar to $ 100,000 by 2021. However, JPMorgan Chase analysts led by Nikolaos Panigirtzoglou take a slightly different view, believing that Bitcoin’s volatility should converge with that of gold to result in a “crowding out of gold”. Until then, the analysts don’t expect Bitcoin to rise above $ 146,000 this year.

Even if Bitcoin is taking a breather from its recent upward trend, there are a few tokens that have continued their upward movement unabated. Let’s take a look at the possible fundamental reasons behind their rally and establish the technical levels to look out for.

LRC / USD

The price of Ether has skyrocketed in recent days, as has activity on the Ethereum network. This has stimulated gas charges on the network by a huge margin. While the higher fees may not bother the wealthy, the smaller traders will likely find it difficult to execute lower value trades.

To save on skyrocketing gas costs, traders seem to have Loorpring (LRC) on board, which saw stimulated trading volume on the decentralized exchange, and data from Dune Analytics shows the figure is up to $ 5.49 million.

It is only recently that Loopring Exchange v2 was launched based on Loopring Protocol 3.6, and is considering. the current market-wide rally and the rise in ETH gas fees, it couldn’t have come at a better time.

The team also plans launch AMM liquidity mining and a few other programs on January 7 to drive the adoption of zkRollup layer-2 scalability and increase liquidity. Loopring estimates that the annualized returns of the first three SMP pools can be as high as 40%.

If trading activity remains high, the congestion of the Ethereum network may not decrease quickly and that could work in Loopring’s favor. Let’s see how his token has responded to this positive fundamental development.

The LRC price shot up from $ 0.175 on Jan. 3 to an intraday high of $ 0.585 today, up 234% within three days. This rise has pushed the RSI deep into overbought territory, indicating an increased risk of a minor downturn or consolidation.

LRC / USDT daily chart. Source: TradingView

The LRC / USD pair is currently facing a small resistance, near the 200% Fibonacci expansion level at USD 0.58952.

However, if the bulls continue to buy and push the price above USD 0.509, the rally could extend to the 261.8% expansion level at USD 0.73617 and then the 300% expansion level at USD 0.82681.

With a strong uptrend, the corrections are sharp and short-lived. The first down side is the 38.2% Fibonacci retracement level from the most recent leg of the upward move at $ 0.42838.

A strong recovery from this level will indicate that traders are buying aggressively on dips without waiting for a deeper correction, and this could increase the prospects for a resumption of the uptrend.

This bullish momentum may weaken if the pair moves below the 50% retracement level at $ 0.38.