The Loom Network (LOOM) token has recently experienced an incredible rise of 400%? Is it on track to enter the top 100 cryptocurrencies by market cap? Today we will introduce you to the LOOM token, which has an eye-catching performance. Let's dive into the details of this token.

What is the LOOM Token?

The LOOM token is the native token of the Loom Network platform and has multiple uses. First, it serves as a tool to support DApp developers on the Loom Network, enabling them to create and run decentralized applications (DApps). By using the LOOM token, developers can easily access the underlying blockchain infrastructure of the Loom Network while also benefiting from the security and trustworthiness of the blockchain.

In addition, LOOM tokens play a key role in maintaining the security of the Loom Network mainnet. Those who hold LOOM tokens can choose to lock their tokens to help ensure the security of the mainnet. In return, they will receive additional rewards. This mechanism is designed to encourage community members to actively participate in the security maintenance of the mainnet.

In short, the LOOM token is not only a powerful assistant for DApp developers on the Loom Network, but also plays a vital role in ensuring the security of the mainnet, becoming an indispensable part of the Loom Network platform.

Differences between LOOM token and Bitcoin and Ethereum:

Issuance Mechanism: The supply of Bitcoin and Ethereum tokens is fixed and not affected by market demand. In contrast, the supply of LOOM tokens is variable and can be adjusted based on market conditions. This means that LOOM tokens can flexibly respond to changes in market demand.

Uses: Bitcoin is primarily used as a digital currency for value storage and value exchange. Ethereum focuses on supporting the creation of smart contracts and the deployment of decentralized applications. The main purpose of the LOOM token is to create and run centralized applications (DApps) on the Loom Network, and it can also be used to participate in the network's consensus mechanism to ensure the security and stability of the network.

Technical principle: Bitcoin relies on a centralized consensus mechanism to maintain the security and immutability of the network through a large amount of computing. Ethereum is a blockchain platform that supports smart contracts and can execute various decentralized applications. The LOOM token is a tool on the Loom Network, which uses the scalability and security of the Ethereum blockchain and uses a technology similar to Plasma to solve the problem of on-chain congestion, focusing on the development of DApp applications.

In short, these three tokens have obvious differences in issuance mechanism, purpose and technical principles, and are suitable for their respective application scenarios and needs.

The latest situation of LOOM token:

Currently, the LOOM token has made significant gains over the past 24 hours, growing by 10.41%. Its transaction volume was 877 million, and its total transaction value reached $1.342 billion.

Most notably, the LOOM token managed to break through the 950-day downtrend line, hitting a year-high price of $0.210. This is not the first time LOOM has attempted to break through this trendline, but this breakthrough has attracted widespread market attention. However, LOOM may face some resistance at the $0.200 level, a price area that has existed since 2020, so it will take time and strategy to overcome this resistance.

In addition, LBANK and Binance recently announced that they will list LOOM tokens on their trading platforms and support up to 10x leverage trading. This news has also sparked strong interest in LOOM tokens in the market.

Will it make it into the top 100 coins?

Although the LOOM token is currently ranked 107th in the top 100 by market capitalization, it is working tirelessly. The RSI indicator shows that the bulls are still very strong, which may bring more growth opportunities for the LOOM token. Despite the volatility in the market, the LOOM token has shown tenacity and determination, and we look forward to more surprises in the future.

Although LOOM is currently in the overbought zone, it does not necessarily mean that the price will fall. If LOOM successfully breaks through the $0.200 resistance, the next key resistance level will be $0.267. The Fibonacci retracement level provides strong support to guide the LOOM token forward.

Of course, the market is full of uncertainty, and if resistance is encountered, the LOOM token may experience a period of decline, but holders should remain confident because it has shown its tenacity. The road ahead may be challenging, but the LOOM token is a little monster that never gives up!

Can I still get LOOM?

I think it is not appropriate to buy LOOM at the bottom at this time, but to sell it at the right time. First of all, the team of the LOOM project does not seem to be very good at marketing, that is, they are not very good at bragging. This can be clearly seen in their community and social media. In the crypto world, projects must be good at promoting themselves and attracting more participants, especially during bull markets.

Secondly, the whales of LOOM control most of the chips. The whales are not philanthropists. They often attract leeks and then dump the market. Many brothers and sisters will enter the market, but they don’t know how to leave, and eventually get stuck. As the saying goes, those who know how to buy are apprentices, and those who know how to sell are masters.

If you really like the LOOM project, there may be an entry opportunity when the price drops to around $0.05. Tokens with basic applications usually make money during the bull market cycle.

Thank you for your support, see you next time!