Litecoin (LTC) price has recently experienced a significant market correction, reflecting a downward trend. The altcoin has slipped below the crucial $65 support level, signaling growing bearish sentiment among traders. This decline is part of a broader correction in the cross-border cryptocurrency market.
Litecoin Price Plunges, Triggers Massive LTC Short Liquidations
According to Coinglass data, the Litecoin price experienced significant liquidation events recently, notably a sharp peak around August 21, 2024.
On this day, a substantial volume of both long and short positions was liquidated, with a notable spike in trading volume occurring in tandem with a sharp fluctuation in LTC price.
The chart shows a spike in short liquidations amounting to over $666,000 across several exchanges, suggesting a sudden and sharp increase in LTC price that triggered these liquidations.
Litecoin Price Forecast: Can LTC Rally to $80?
LTC price plunged by 5% to $63.63 on Wednesday, reflecting broader market trends affecting other cryptocurrencies. With BTC price hovering below $60,000, investors are witnessing a period of significant fluctuation.
Over the past 24 hours, Litecoin has seen a low of $62.42 and a high of $66.16, indicating the volatility in the crypto market.
Over the past week, the price of Litecoin has surged slightly by 0.43%, following the recovery in the past few days. However, LTC has decreased 13% over the past month, underscoring its longer-term challenges amid broader market pressures.
Whale Activity and Liquidations Signal Market Volatility
According to Santiment data on the Litecoin price market, the number of large-scale transactions often aligns with significant price adjustments. There is a visible correlation between spikes in whale transaction activity and movements in the price of LTC.
Litecoin price prediction currently faces a downward trend, with the potential to revisit the $60 support mark. Increased selling pressure might further depress its value to $55, signaling a deeper bearish phase.
The 4-hour technical indicators for Litecoin show a notable downward trend. The Relative Strength Index (RSI) has seen significant shifts. Initially, the RSI dipped below the 40 mark at 32, suggesting a neutral rend, and if bears gain more, the trend could dip to an oversold region.
Conversely, overcoming the $65 resistance could spark a bullish wave, possibly lifting the Litecoin price towards $80. A sustained bullish effort might even propel LTC to the $100 level in an upcoming rally.
Frequently Asked Questions (FAQs)
Litecoin’s price dropped significantly due to increased market volatility, falling below the $65 support level. This decline is part of a broader market correction affecting various cryptocurrencies.
The volatility is driven by heightened whale transaction volumes and significant liquidations in both long and short positions, especially around August 21, 2024. These factors contribute to sudden price fluctuations.
Yes, if Litecoin can overcome the $65 resistance level, it could spark a bullish rally, potentially pushing the price towards $80 or even $100 with sustained momentum.
Coingape Staff
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/litecoin-price-analysis-could-ltc-rally-by-37-after-recent-drop/
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