Litecoin (LTC), the silver of the cryptocurrency world, has seen a significant price drop below the $65 support level, sparking heightened market volatility. This decline is part of a broader correction in the cross-border cryptocurrency market, with the altcoin’s price closely mirroring the overall trend.
Recent Price Plunge and Liquidations
According to Coinglass data, the Litecoin price experienced significant liquidation events on August 21, 2024. 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.
Price Forecast: Potential for a Bullish Rally
LTC price plunged by 5% to $63.63 on Wednesday, reflecting broader market trends affecting other cryptocurrencies. With Bitcoin price hovering below $60,000, investors are witnessing a period of significant fluctuation. However, LTC has shown signs of recovery in the past few days, with a slight increase of 0.43% over the past week.
While the current downward trend suggests a potential revisit to the $60 support mark, there is also a possibility of a bullish rally. If Litecoin can overcome the $65 resistance, it could spark a wave of buying pressure, potentially lifting the price towards $80. A sustained bullish effort might even propel LTC to the $100 level in an upcoming rally.
Whale Activity and Market Volatility
Santiment data reveals a correlation between spikes in whale transaction activity and movements in the price of LTC. This suggests that large-scale transactions often align with significant price adjustments.
Technical Indicators
The 4-hour technical indicators for Litecoin show a notable downward trend. The Relative Strength Index (RSI) has seen significant shifts, initially dipping below the 40 mark at 32, suggesting a neutral trend. However, if bears gain more momentum, the RSI could dip to an oversold region.
Conclusion
Litecoin’s recent price drop has been influenced by broader market trends and heightened volatility. While the current outlook is bearish, there is potential for a bullish rally if LTC can overcome the $65 resistance. Investors should closely monitor whale activity and technical indicators to make informed decisions.