As a seasoned crypto investor who has weathered numerous market cycles, I find myself intrigued by the current state of Litecoin. The coin’s price consolidation and the surge in whale activity are reminiscent of patterns we’ve seen before – a hint that the market may be gearing up for a potential bull run. However, the decline in active users and the subdued activity in the futures market do raise concerns about the coin’s immediate future.
The price of Litecoin has been staying relatively stable, or “consolidating,” while the interest in future contracts among traders remains low, even though there’s been an increase in activity from significant investors, commonly known as “whales.
At present, the value of the coin is approximately $61, a figure it’s maintained near for about two weeks now. This price level signifies a 27% rebound from its lowest point in August, but it still falls short by 44% compared to its peak this year.
Litecoin: Whales Accumulate Amidst Declining Active Users
Currently, Litecoin’s price stands at approximately $60,73, representing a 1% increase compared to the previous day. Notably, its trading volume has seen a boost of 4.81%. Moreover, forecasts indicate that Litecoin might reach $70,97 by year-end. Interestingly, Litecoin’s price trend seems similar to Bitcoin‘s, which peaked at an all-time high of $73,800 in March before dipping to $49,000 in August, and currently trading around $54,000.
According to Santiment’s data, there’s been a significant increase in major investors buying this well-known altcoin over the past few weeks, possibly due to them capitalizing on lower prices. Moreover, the platform has noted an escalation in discussions about Litecoin on social media, signaling a rising curiosity towards the asset.
Litecoin Futures Market Dwindles, Signaling Weakening Demand
A notable issue with this digital currency is the low trading volume observed in its futures market. As of last Saturday, 7th September, the total value locked in its futures contracts was approximately $243 million, a considerable decrease from the year-to-date high of over $708 million.
In financial markets, open interest in futures serves as an essential gauge because it represents the current count of unfilled contracts. When this number is high, it often suggests strong investor interest in the particular cryptocurrency.
Furthermore, the funding rate for Litecoin (LTC) has dropped substantially, shifting from 0.078% early in the week to only 0.0016%. Typically, a positive funding rate implies that those with long positions are paying fees to those with short positions. The current near-zero rate could signal a possible risk of additional decreases, hinting at a potential reduction in interest for maintaining long positions in Litecoin futures.
Litecoin Faces Downward Pressure, Key Support Levels at $50
If the current downward trajectory persists, there’s a possibility that LTC, a prominent proof-of-work cryptocurrency, might drop to its next significant support level, which is around $60 – the lowest point it reached on January 3.
Should the price drop beneath the current support, a key level to observe would be $50 – a low point achieved in August. On the flip side, a surge above the downward trendline, bolstered by increased trading volume, might signal the possibility of further significant increases.
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2024-09-10 20:35