It rotates, forming loops (5)
I believe the answer is:
spool
'it rotates' is the definition.
The definition suggests a singular noun which matches the answer.
'forming loops' is the wordplay.
'forming' indicates an anagram.
'loops' with letters rearranged gives 'SPOOL'.
Can you help me to learn more?
(Other definitions for spool that I've seen before include "Loops around a thread holder" , "Cylinder for winding film etc" , "Ribbon holder" , "Loops around with reel" , "On which film is wound" .)