Litecoin $63.85 (LTC) has been in a consolidation phase recently as a peer-to-peer cryptocurrency. Open interest in Litecoin’s futures market remains low, while activity from large investors, known as whales, has increased. LTC has been trading at $64 for the past two weeks, 27% above its August low and 44% below its yearly high.
Whale Movements Increase in Litecoin
According to data provided by Santiment, Litecoin has been experiencing intense buying activity by whales in recent weeks. This suggests that large investors see the price decline as an opportunity. In addition, there has been a significant increase in posts about Litecoin on social media platforms. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
However, according to other data shared by the same source, Litecoin has seen a significant decrease in the number of daily active addresses in recent months. For example, the number of active addresses, which was 327,000 on Friday, September 6, increased to 801,000 in June. This indicates a decrease in Litecoin transaction activity by users.
Futures Market Stagnation
Open interest in Litecoin’s futures market has been quiet in recent months. As of Saturday, September 7, open interest in the futures market stood at $243 million, down from the year-to-date high of $708 million. Open interest in the futures market is often considered an indicator of how much demand an asset has among investors.
Litecoin’s funding rate has also fallen to 0.0016%, down from 0.078% earlier this week. A positive funding rate means that asset owners are paying a fee to short holders. However, a funding rate approaching negative territory could increase the risk of a further decline.
Technical Analysis and Support Levels
From a technical perspective, Litecoin is trading below the downtrend line that connects the highest swings since May. It is also trading below the 50-day moving average, suggesting that the downtrend could continue. In this case, Litecoin could fall to the next major support level of $60. If this level is broken, the price is likely to fall to $50. However, if there is a volume-supported move above the downtrend line, Litecoin could see bullish movements.
“Significant buying activity has been observed among Litecoin whales in recent weeks. This suggests that investors are viewing price declines as opportunities,” Santiment said.
While the whale activity and social media engagement increase observed in Litecoin in recent weeks are remarkable, the sharp decline in the number of active addresses and the stagnation in the futures market indicate that the price may fall further. Investors should closely monitor Litecoin’s important technical levels and pay attention to changes in funding rates. In particular, the $60 and $50 levels stand out as important support points for the future movement of the price. At the same time, the transition of the positive funding rate into negative territory may increase short-term risks.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
