Litecoin Approaching $120 Mark Amid Market Pullback

Litecoin is nearing the $120 mark as the broader market faces a downturn. With sellers gaining control, will the LTC price retest $98?

With nearly $250 million liquidated in the crypto markets over the past 24 hours, Litecoin has lost bullish momentum. It is currently trading at $123.31, reflecting a 3% decline in 24 hours.

Potential Dip Below $100

Crypto analyst Ali Martinez has pointed to a significant crash potential for Litecoin within a parallel channel on the daily chart. Following an early double-top reversal, Litecoin has dropped to the mid-line around the $115 mark.

The lower band of this channel is nearing the $98 mark, suggesting that bears could push the price below $100 if the downturn continues.

Shift in Trader Sentiment in Derivatives Market

As the likelihood of a drop rises, the derivatives market for Litecoin shows a shift in sentiment, with increased bearish positions noted. The long-to-short ratio over the last 24 hours is 0.9117, although leading exchanges, like Binance and OKExchange, still reflect bullish sentiment.

In total, liquidations across all positions have surged to $3.23 million, with bulls losing $2.79 million while shorts saw $440,010 in liquidations. Despite this increased bearish activity, the short-term bullish sentiment is resurging, indicated by rising premiums on long positions.

Network Growth Indicates Strength

According to IntoTheBlock, the Litecoin network has witnessed a significant uptick in the total number of addresses, now totaling 8.24 million, with a 30-day average of 8.15 million. This increase correlates with a dramatic rise in transaction volume, which has jumped from $3.74 billion to $11.37 billion over six months.

Conclusion

While the current market correction suggests a potential decline to $100, the substantial growth in Litecoin’s network could drive demand and fuel a price rebound. The $98 support level remains a buying opportunity, with a potential breakout near $138.