The Mood of Litecoin Whales
Litecoin exhibited a strong positive momentum from mid-June to early July 2023 but encountered substantial volatility following its halving event on August 2, 2023. Due to the halving, mining rewards were halved from 12.5 LTC per block to 6.25 LTC per block, in accordance with the Litecoin protocol’s predefined halving schedule, which occurs every 840,000 blocks. This was the third halving event for Litecoin, following the initial events in 2015 and 2019.
The first Litecoin halving in 2015 reduced the block reward from 50 LTC to 25 LTC per block, while the second halving in 2019 cut it further from 25 LTC to 12.5 LTC per block. The current bearish sentiment among Litecoin whales has been a significant factor contributing to the ongoing downtrend in LTC’s price. According to on-chain data from Santiment, large holders of Litecoin (10,000 to 10 million LTC) began selling in August, and given the influence of these whales in the blockchain ecosystem, retail investors quickly followed their lead.
U.S. Producer Prices Surpass Expectations in September
This Wednesday, Bitcoin, Ethereum, Litecoin, and several other altcoins experienced a fresh decline against the U.S. Dollar. One key reason for this was the U.S. reporting that the Producer Price Index (PPI) for September exceeded expectations, increasing by 2.2% year-on-year, compared to the anticipated 1.6%. This heightened concerns about persistent inflationary pressures in the U.S., strengthening the dollar and driving down risk assets. There is also uncertainty regarding whether the Federal Reserve will hike interest rates further in its upcoming policy meetings.
The surprising increase in U.S. producer prices, largely driven by higher energy costs, has led investors to focus on upcoming consumer inflation data and the earnings season, which starts this Friday.
In the past 24 hours alone, nearly $50.3 million in long positions have been liquidated across the crypto market. For the short-term, the cryptocurrency market continues to face various challenges, including economic factors and geopolitical risks. Investors are also closely monitoring the ongoing conflict in the Middle East, which could trigger risk-off movements in the cryptocurrency sector.
Currently, investors remain cautious with Litecoin trading at $61.45, and many crypto analysts suggest that the price could drop even further in the coming weeks, especially if Bitcoin continues its downward trend.
Litecoin (LTC) tehnička analiza
Litecoin (LTC) has seen a sharp drop of more than 40% since July 02, 2023, falling from $116.05 to a low of $55.79. Currently, Litecoin is priced at $61.45. Technical analysis indicates that the bears are still in control of the market. As long as the price remains below $70, there can be no talk of a trend reversal, and the current market sentiment remains firmly in the SELL-ZONE.
Key Support and Resistance Levels for Litecoin (LTC)
In the chart (from February 2023 onwards), we’ve marked important support and resistance levels that can assist traders in anticipating price movements. Litecoin (LTC) remains under pressure, but if the price pushes above the $70 resistance level, the next significant resistance could be at $80.
The current support level stands at $60. If Litecoin drops below this, it would signal a “SELL” signal, and the price could then target $55. Should it fall below $50 (a crucial support level), the next target might be around $40.
Factors Supporting the Potential Rise of Litecoin (LTC)
The cryptocurrency market is known for its volatility, and while efforts are underway to stabilize it, price fluctuations remain a staple. The upside potential for Litecoin (LTC) in the near term seems limited for the rest of October 2023, but if it pushes above the $70 mark, the next target could be $80. A move above $80 would give bulls a greater chance to steer the price movement.
The broader cryptocurrency market sentiment plays a crucial role in LTC’s price direction. Should investor confidence continue to improve, this could propel LTC upwards. Additionally, the U.S. Securities and Exchange Commission (SEC) is expected to make critical decisions in the coming days regarding pending spot Bitcoin ETF applications.
October 17 marks the second deadline for the SEC’s decision on several Bitcoin ETFs, including the iShares Bitcoin Fund, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, Invesco Galaxy Bitcoin ETF, and Wise Origin Bitcoin Trust. SEC approval for any of these could positively impact the price of Litecoin and many other cryptocurrencies.
Indicators Suggesting a Decline in Litecoin (LTC)
Since July 02, 2023, Litecoin has been on a downward trajectory, and investors should remain cautious, given the uncertain macroeconomic landscape. The negative sentiment among Litecoin whales is a significant factor contributing to the price downturn. The broader market sentiment, alongside economic data such as the Producer Price Index (PPI) for September, which exceeded forecasts, has added pressure to risk assets like Litecoin.
The recent PPI data, indicating a 2.2% increase compared to the expected 1.6%, added to concerns about persistent inflation, with the dollar strengthening and risk assets taking a hit. Analysts suggest that Bitcoin is likely to continue its downward movement, which would negatively impact Litecoin’s price. The uncertainty surrounding potential Federal Reserve rate hikes also contributes to the “market turbulence” affecting crypto markets.
As the price of Bitcoin generally influences Litecoin, a further decline in Bitcoin could severely affect Litecoin’s value. If Bitcoin falls below $25,000, this could trigger a significant decline in LTC.
Expert Opinions on Litecoin (LTC)
Litecoin (LTC) has been in a downtrend since July 02, 2023, and many analysts believe that the lack of investor interest in accumulating LTC suggests that prices will likely stay low. This Wednesday saw another dip in Bitcoin, Ethereum, Litecoin, and other altcoins against the U.S. Dollar, partly due to U.S. Producer Price Index (PPI) data exceeding expectations (2.2% compared to 1.6% year-on-year).
The PPI data has heightened concerns about ongoing inflationary pressures in the U.S., strengthening the dollar and putting downward pressure on risk assets. Analysts expect the U.S. central bank to maintain restrictive interest rates for an extended period, which could hinder the growth of risk assets, including cryptocurrencies.
Izjava o odricanju od odgovornosti: Cryptocurrency is highly volatile and may not be suitable for everyone. Only invest what you can afford to lose. This information is provided for educational purposes only and should not be construed as financial advice.
