Litecoin LTC Price Forecast: Will Support Levels Hold or Break?
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Litecoin is currently consolidating around $61, with increased whale activity but declining active user numbers and a weakening futures market.
Key technical indicators and support levels suggest potential further declines, though a breakout above current trendlines could signal a bullish shift.
Litecoin (LTC) has been caught in a consolidation phase, trading around $61—a level it has maintained for the past two weeks. This price reflects a 27% recovery from its August low, yet it remains 44% below its peak for the year. Recent data shows that LTC price was marginally up by 1% to $60.73, with trading volume increasing by 4.81% from the previous day.
Despite this recovery, Litecoin’s performance has been inconsistent. While whale activity has surged, with large holders increasingly buying up the asset, the number of active users has declined. As of early September, daily active addresses fell to 327,000 from 801,000 in June, according to Santiment.
Futures Market Weakness
The LTC futures market also shows signs of weakness. As of September 7, open interest in LTC futures dropped to just over $243 million, a steep decline from the year-to-date high of more than $708 million. This decrease suggests waning interest from investors. Furthermore, the funding rate for LTC futures has plummeted from 0.078% to a near-negative 0.0016%. A lower funding rate indicates reduced demand for long positions, adding to the bearish outlook.
Technical Indicators and Support Levels
Technically, Litecoin faces downward pressure. It remains below a descending trendline established from the highest price swings since May 20 and trades beneath its 50-day moving average. These indicators suggest a potential for further declines. The key support levels to watch are $60 and $50. If LTC breaks below the $60 mark, it could test the $50 support level, the lowest point seen in August.
In contrast, some optimistic predictions suggest LTC could reach $70.97 by the end of the year, contingent on a volume-supported breakout above the current trendline. If the price rises significantly and breaks above this trendline, it could signal a potential bull run for Litecoin. However, given the current technical indicators and market sentiment, caution is advised as further declines remain a possibility.
While there is potential for Litecoin to enter a bullish phase, current trends and market data indicate a cautious outlook. Investors should monitor key support levels and futures market activity closely to gauge Litecoin’s next move.
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