**Litecoin Nears $120 as Market Experiences a Pullback: Is a Retest of $98 on the Horizon?**
Litecoin is currently hovering around the $120 mark as the overall market takes a step back. With sellers taking the reins, could the LTC price be on track to revisit the $98 level? In the last 24 hours, the crypto markets have seen nearly $250 million in liquidations, causing Litecoin to lose some of its bullish momentum. At present, Litecoin is trading at a market value of $123.31, reflecting a 3% decline over the past day. Given the rising selling pressure, it appears that Litecoin may continue its descent below the $120 threshold. Is there a chance that Litecoin could dip below the $100 mark as a new negative trend emerges?
**Litecoin’s Potential to Dip Below $100**
Crypto analyst Ali Martinez has pointed out the potential for a significant drop in Litecoin, as indicated by a parallel channel on the daily chart. Following an early double-top reversal from the upper resistance, Litecoin has now settled around the mid-line near $115. The lower boundary of this parallel channel is close to the $98 mark. If the downward trend persists and Litecoin approaches the mid-line at $115, bears are likely to test this lower boundary, which could lead to another decline below the $100 milestone.
**Derivatives Market: A Shift in Trader Sentiment**
As the chances of a downturn grow, the derivatives market for Litecoin is reflecting a change in trader sentiment. The long-to-short ratio over the past 24 hours indicates a rise in bearish positions. While the overall ratio stands at 0.9117, the long-to-short ratio on major exchanges like Binance and OKExchange remains optimistic. This suggests that leading traders are still feeling positive about their accounts and positions.
In the last 24 hours, total liquidations across all positions have surged to $3.23 million. Bulls have faced losses of $2.79 million amid these increased liquidations, while short liquidations amount to $440,010. Despite the uptick in bearish activity, short-term bullish sentiment is making a comeback. According to Litecoin’s open interest-weighted funding rate, bulls are willing to pay premiums to maintain their long positions, with the funding rate rising to 0.0024% after nearly hitting 0%.
**Litecoin Network Growth Signals Strength**
According to IntoTheBlock, the Litecoin network has experienced a notable increase in the total number of addresses, now reaching 8.24 million, with a 30-day average of 8.15 million. This growth in addresses has been accompanied by a significant surge in transaction volume, which has jumped from $3.74 billion to $11.37 billion over the past six months.
**Conclusion**
The current short-term supply wave, coupled with the broader market correction, suggests a potential drop to the $100 level. However, Litecoin’s impressive network growth, which is driving increased demand, could pave the way for a price rebound. The $98 support level presents a buying opportunity, with the potential for a breakout at the $138 level.
