You can sort of do what you want with the Advanced Button Controller app's "cycle through scenes" feature. It won't loop through colors on a press and allow you to release and stop at that color, so the workaround you'd need is to choose a few of your favorite colors, save them as scenes, and use the app to cycle through those.
Check out also my DImmer Button Controller app: [RELEASE] Dimmer Button Controller (configure Pico to emulate Hue Dimmer or any button device to easily control lights)
I have a function similar to this as well, inspired by the Hue Dimmer, which lets you press the "On" button mulitple times to cylce through up to 5 scenes. in Dimmer Button Controller, you can either choose predefined Hubitat scenes to cycle through, or you can manually specify colors or color temperatures for each press. (I find that easier than creating scenes I'd only use for this purpose.) "Held" support is coming soon so I can use it with the Osram dimmer; right now only "pressed" and optionally "released" events are used, with "released" only used if you use the "dim while held" function that translates to a startLevelChange/stopLevelChange on the device. Speaking of which, it seems like I might also be able to imitate something like this to "loop through colors while held" (and stop when released) if you really want that feature. The trick is that any app would have to, as I said, imitate that function since unlike dimming, no driver I'm aware of supports this directly. (Probably not a big problem for most; may run into rate limiting on Hue Bridge bulbs if you do a lot at the same time.)