Litecoin (LTC) Faces 25% Crash? Traders Brace for a Sell-Off
In the ongoing market uncertainty, Litecoin (LTC) is expected to lower the price drop, although most cryptocurrencies are witnessing a price recovery. The underlying reason for this bearish speculation is the formation of negative price action and bearish feelings among traders, as reported by on-chain analytics firm Coinglass.
Current price motivation
LTC is currently trading at close to $127, down more than 6% in the past 24 hours. During the same period, its trading volume fell by 23% due to its bearish price dynamics, indicating a decline in traders and investors’ participation compared to previous days.
Litecoin (LTC) technical analysis and price forecast
According to expert technical analysis, LTC It has been moving between parallel channel modes since November 2024, as it has been moving in parallel channel mode. Despite the bearish past few days, LTC’s price has soared nearly 38%, from $95 to $141. However, it is now experiencing sales pressure due to the history of price declines and current market sentiment.
According to the historical model, if LTC fails to exceed the $141 level, there is a high probability that it will drop by 25% to reach the $95 support level. Currently, the asset’s trading volume is higher than the 200 exponential moving average (EMA) in the daily time range, indicating that LTC is on an upward trend.
Mixed on-chain indicators
Intraday traders appear to be on the bearish side when examining current market sentiment and reversal levels, as reported by Chain Analytics. Small shop.
Data from the exchange clearance map suggests that traders’ bets on the short side are highly leveraged at $141.5 and have established short positions worth $67 million in the past week. Meanwhile, traders seem exhausted in the long run, building only a long position worth $21 million.
These over-leveraged positions reflect the sentiment of short traders and long traders, as some people think the price will not exceed that level. If you do this, these positions will be liquidated.
Despite the bearish outlook for LTC, investors and long-term holders appear to be accumulating tokens. Data from spot inflows/outflows suggests that the exchange has witnessed the outflow of $9.41 million worth of LTC tokens over the past 24 hours, indicating potential accumulation.
When these chain boundary indicators are combined with technical analysis, it seems that short-term players are bearish and prices are expected to fall in the coming days. Meanwhile, long-term holders appear to be taking advantage of the price drop and are accumulating tokens considerably.
