Is Litecoin Price Finally Ready for A Bull Run?
Litecoin price has been in a period of consolidation, with futures market open interest remaining subdued despite a rise in activity from large holders, often referred to as whales.
The coin is currently trading around $61, a level it has hovered at for the past two weeks. This price represents a 27% recovery from its August low, though it remains 44% below its highest point of the year.
Litecoin: Whales Accumulate Amidst Declining Active Users
As of writing, LTC price was up only 1% to $60,73, with its trading volume soaring 4.81% from yesterday. In addition, a recent Litecoin price prediction shows that the crypto could hit $70,97 by the end of the year. The movement in the price has mirrored that of Bitcoin, which surged to an all-time high of $73,800 in March before dropping to $49,000 in August. Bitcoin is now trading around $54,000.
Data from Santiment shows a notable uptick in whale purchases of this famous altcoin over recent weeks, suggesting that large investors are taking advantage of the lower prices. Additionally, the platform has reported a surge in social media mentions for Litecoin, indicating growing interest in the asset.
Credit: X.com
Litecoin Futures Market Dwindles, Signaling Weakening Demand
Another significant concern for this cryptocurrency is the subdued activity in its futures market. As of Saturday, September 7, the open interest in its futures was just over $243 million, a substantial drop from the year-to-date peak of more than $708 million.
Open interest in futures is a critical indicator in financial markets as it reflects the total number of outstanding contracts that have not yet been settled. Typically, a higher open interest indicates greater demand among investors for the cryptocurrency.
In addition, the funding rate for LTC has decreased significantly, moving from 0.078% earlier in the week to just 0.0016%. A positive funding rate usually means that holders of long positions are paying a fee to those holding short positions. The near-negative current rate poses a risk of further declines, suggesting a potential decrease in demand for holding long positions in LTC futures.
Litecoin Faces Downward Pressure, Key Support Levels at $50
Technically, the coin is exhibiting signs of weakness, as it remains below the descending trendline that connects the highest price swings since May 20. It is also trading below its 50-day moving average, which suggests potential further declines.
Should this downward trend continue, LTC, which is one of the largest proof-of-work cryptocurrencies, could fall to its next critical support level below $60, the lowest price it hit on January 3.
If it breaks below this support, the next significant level to watch is $50, which was its lowest point in August. Conversely, if there is a volume-supported rise above the descending trendline, it could indicate potential for more substantial gains.
The post Is Litecoin Price Finally Ready for A Bull Run? appeared first on CoinGape.
Filed under: News - @ September 10, 2024 5:27 pm