Litecoin in Trouble: Is a Drop Below $100 Inevitable?
Litecoin is approaching the $120 mark as the broader market pulls back. With sellers in control, is the LTC price destined to retest $98?
With the crypto markets liquidating nearly $250 million over the past 24 hours, Litecoin is losing bullish momentum. Litecoin is now trading at a market value of $123.31 with a 24-hour fall of 3%.
Amid the surge in selling pressure, the downfall in Litecoin is projecting a potential continuation under the $120 mark. Is Litecoin bound to crash under the $100 mark with a new negative cycle at play?
Litecoin Potential to Dip Below $100Ali Martinez, a crypto analyst, has highlighted the possibility of a massive crash in Litecoin within a parallel channel in the daily chart. With an early double-top reversal from the overhead ceiling, Litecoin is now down to the mid-line near the $115 mark.
The lower band of the parallel channel is close to the $98 mark. Bears are likely to test the lower boundary line if the downfall continues to reach the mid-line at $115. This will mark yet another downfall under the $100 milestone for Litecoin.
Derivatives Market: A Shift in Trader SentimentAs the likelihood of a downturn increases, Litecoin's derivatives market is signaling a shift in sentiment. The long-to-short ratio over the past 24 hours shows a surge in bearish positions.While the overall ratio stands at 0.9117, the long-to-short ratio on top exchanges like Binance and OKExchange remains bullish.This indicates optimism among leading traders based on their accounts and positions.The total 24-hour liquidations across all positions have surged to $3.23 million. Bulls have lost $2.79 million amid the increased liquidations, while short liquidations total $440,010.
Despite the increased long-to-short ratio and liquidations, the short-term bullish sentiment is back on the rise.
Despite the increased bearish activity, short-term bullish sentiment is rising again. According to Litecoin's open interest-weighted funding rate, bulls are willing to pay premiums to maintain their long positions. Specifically, the funding rate rose to 0.0024% after nearly reaching 0%
Litecoin Network Growth Signals StrengthAccording to IntoTheBlock, the total number of addresses on the Litecoin network has seen a significant increase. Currently, the network boasts 8.24 million addresses, with a 30-day average of 8.15 million.
With the increasing addresses, the transaction volume has also seen a massive surge. Over the past six months, the transaction volume over the network has increased from $3.74 billion to $11.37 billion.
ConclusionThe short-term supply wave amid the broader market correction suggests a potential drop to $100. However, Litecoin's significant network growth, leading to increased demand, may fuel a price surge.The buying opportunity remains at the $98 support level, with a potential breakout at the $138 level.Text source: The Crypto Basic
