From October 28 to November 10, LRC experienced a staggering increase of over 800%. The LRC entered the price discovery after a bullish pennant breakout on November 7 and hit its ATH of $ 3.85 on November 10.
Since then, the price has been steadily falling, alternating between the descending channel and the ascending channel. As a result, over the past ten days, the token has lost more than a third of its value. Despite an increase of 12.7% on November 19, the trend was accentuated as the movement of prices reversed.
LRC was trading at $ 2.6149 at the time of publication. Although the RSI declined slightly, it remained above the midline, indicating a bullish bias.
Is the long term bias bullish?
LRC’s future course of action remains unclear amid short-term bullish-bearish swings. Therefore, examining the indicators at this stage will provide insight into the future trajectory of LRC.
Considering the DAA price divergence, the chart below shows that the decline has only become stronger in recent days. This is not a good sign, as it highlights the unhealthy nature of the network in addition to the addresses that are active daily.
It is essential that any alternative rally be organic for this indicator to represent bullish streaks on its chart. However, based on the metric’s estimates for LRC, it looks like this alt will struggle to maintain its uptrend phase.
In addition, the average age of coins and the average age of invested dollars have recently seen free declines. One could argue that dormant tokens have started to move as the average age of the money invested in LRC gets younger. And HODLers, especially those who profit from it, have started selling.
If those two curves continue down from here, we’ll see the start of LRC’s complacent race. In practice, we wouldn’t see a lot of coin rallying.