A summary of Litecoin’s performance days after seeing pivots. Long liquidations increase, but not enough to affect the price.
A few days ago, we saw Litecoin in a critical price range. It was on a bull run before and had just entered overbought territory. As such, it was only a matter of time before the bulls ran out of momentum.
How much are 1,10,100 Litecoins worth today
Fast forward to the present and the Litecoin bulls eventually went on hiatus, paving the way for a bearish retracement. To put things in perspective, Litecoin peaked at $114.49 on Monday, followed by a 17% drop to a weekly low of $94.23. A slight recovery in the past 24 hours enabled it to rise to the price of $97.37 at the time of writing.
Source: TradingView
Prolonged liquidations are on the rise, leading to more downturns
During the rally something interesting happened. Traders in the derivatives segment gained confidence. This confidence encouraged more traders to take long positions. Long liquidations tend to contribute to more selling pressure and this may have contributed to more downsides for Litecoin. But was this really the case for LTC’s recent price action?
We recently examined the state of liquidations and found that there have been quite a number of liquidations on both sides. However, Litecoin turned on July 3rd and on the same day, the number of long liquidations was higher than short liquidations. The same trend has continued in recent days.
Source: Coinglass.
Litecoin traders should note that the level of liquidations is likely too low to have a significant impact on the price. As such, it appears that onchain activity was fueled by supply and demand forces in the spot market.
Speaking of supply and demand, it was worth noting that the recent sell-side correction may already be slowing down. LTC’s delivery distribution can provide insight into why. Addresses with between 100,000 and 1 million LTC (indicated in yellow) have the largest share of Litecoin in the circulating supply. Interestingly, the same category of whales has been rebalancing in recent days.
Source: Sentiment
The same whale category slowed the rate of outflow. This allowed Litecoin to take a break from the selling pressure for the past 2 days. Perhaps more interesting is the point where this happened, as it could point to the next critical support.
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Litecoin previously showed support and resistance within the $95 to $98 price range. It is currently in this range, meaning the next few days will determine whether the bulls regain control or not. Don’t forget that August is fast approaching, hence the dawn of the next halving has almost arrived. As such, LTC holders have an incentive to hodl.
This post Litecoin longs to be wiped out as the sell-off begins
was published first on https://ambcrypto.com/litecoin-longs-get-obliterated-as-sell-off-commences/
