As a seasoned crypto investor with several years of experience under my belt, I have seen my fair share of market fluctuations and price volatility. The sudden halt of the Litecoin (LTC) price rally this week left me feeling a mix of disappointment and intrigue. After all, the bullish narrative was strong, with LTC climbing from support at $56 to peak at $74.
The surge in Litecoin‘s price came to a surprising halt this week due to the prevailing negative mood in the cryptocurrency market. Having gained momentum from its base at $56, Litecoin reached a high of $74, indicating a robust bullish trend.
The decrease of approximately 2.5% in Litecoin futures open interest reflects the struggles of bulls as they try to protect the $70 mark and reinitiate a rally towards $100 during the month of July.
According to Coinglass data, the decrease in the weighted-OI funding rate for Litecoin to 0.005 suggests that the price may continue to fall. Long position holders were heavily impacted by liquidations, contributing to a total of $293k out of the $312k in total liquidations.
The price of Litecoin remained slightly elevated above $70 during US trading hours on Monday, marking a 3.2% decline. The exchange volume dropped to approximately $266 million, while the market capitalization fell to around $5.2 billion. This suggests a decrease in investor enthusiasm.
Fidelity Digital Assets Adds LTC
On Thursday, the Litecoin Foundation announced that Fidelity Digital Assets had expanded their list of supported cryptocurrencies to include Litecoin. With an impressive $12 trillion in assets under their management, Fidelity is a major player in the financial world.
Litecoin earned the distinction of being the third-ranked cryptocurrency, following Bitcoin and Ethereum, to receive significant institutional backing, opening up an expansive investor base for it.
“Fidelity announces the addition of Litecoin to its list of tradable cryptocurrencies via Fidelity Crypto. Joining Bitcoin and Ethereum, Litecoin is now available for purchasing, selling, and trading through this platform.”
— Litecoin (@litecoin) July 18, 2024
Fidelity’s decision to adopt Litecoin signifies increasing institutional approval for this cryptocurrency as a viable investment asset. Moreover, this move raises the profile and sophistication level of the entire cryptocurrency sector.
Litecoin’s acceptance as a base currency for an Exchange-Traded Fund (ETF) in the US could pave the way for similar approval of a spot Bitcoin or Ethereum ETF. The Securities and Exchange Commission (SEC) has already given the green light to Bitcoin ETFs earlier this year, while Ethereum ETFs are anticipated to begin trading next week after receiving preliminary approvals.
Litecoin Price Rally Impending As Bulls Defend $70 Support
Based on my examination of Litecoin’s prospects, there’s a strong likelihood that its value will surge past $100 within the next few weeks. The $70 mark is poised for a significant shift in trend, and we can anticipate Litecoin’s price to bridge the gap between $70 and $80 by the weekend’s end.
After fiercely arguing for the $70 mark as a strong support level, the Litecoin price forecast indicates a potential progression towards $80. Retaking the support above the 50-day Exponential Moving Average (EMA) at around $71.55, where the 20-day EMA and 200 EMA intersect, would significantly bolster the upward trend.
Above the MACD’s resistance level, Litecoin’s upward movement could lessen the effects of the sell signal. If Litecoin continues to surge, fear of missing out (FOMO) may cause the price to breach the $70 resistance, paving the way for $80.
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2024-07-19 18:35