Litecoin Price: Is Litecoin About To Unleash A Major Breakout and Kickstart A Bullish Rally?
Litecoin has been experiencing a period of consolidation, with limited futures market open interest despite increased activity from large investors, or whales. The current trading price hovers around $61, reflecting a 27% recovery from its August low but still 44% below its yearly high.
Whale Activity Increase in Litecoin
Recent Santiment data shows a surge in whale purchases of Litecoin, indicating that significant investors are capitalizing on the lower prices. Furthermore, there has been a notable increase in social media mentions for Litecoin, signalling growing interest in the asset.
Read Also: XRP Healthcare’s Revolutionary AI Implementation Sends Stock Soaring by 5%
However, concerns arise from the substantial decrease in daily active addresses for Litecoin in recent months. This decline has been accompanied by a significant drop in futures market open interest, which is a crucial indicator of investor demand. The funding rate for LTC has also decreased, suggesting potential downward pressure and weakening demand for long positions in LTC futures.
Race to $50 : Key Support Unveil and Downward Trend
From a technical perspective, Litecoin is showing signs of weakness as it remains below the descending trendline and its 50-day moving average, indicating the potential for further declines. If this downward trend continues, Litecoin could test its critical support levels at $60 and $50.
In conclusion, while there are indications of increasing interest from large investors, the declining active addresses and subdued futures market activity suggest potential downward pressure on Litecoin’s price.
Read Also: PEPE Whale Transfer Enormous 4T Tokens Amid Market Recovery
Follow us on Twitter, Facebook, Telegram, and Google News
Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
