Litecoin Price: Is it at Risk of Falling Below $60?

Litecoin (LTC) Price Analysis: Whales Offload Coins and Derivatives Market Decline

The price of Litecoin (LTC) has been stagnant in the $65 – $68 range, failing to break above $70. As whale investors close their positions, on-chain analysis explores the prospects for LTC price in the coming weeks.

LTC Whales Offloaded 430,000 Coins in August

LTC whales holding 10,000 to 10 million coins entered a selling spree in August, offloading 430,000 coins.
At the current market value of $63, the sold coins are worth approximately $27 million.
This selling activity negatively affects LTC price prospects.
Whales’ influence may lead retail investors to mirror their trades, potentially dropping LTC below the critical $60 support level.

Investors Moving Capital Away From Litecoin Markets

LTC Futures Open Interest has dropped to its lowest since November 2022.
As of Sept 1, LTC Open Interest sits at $238 million, a 56% decline from the beginning of the month.
A downtrend in Open Interest indicates a dearth in capital inflows.
The decline in Open Interest suggests cautious reaction to the recent Halving event.

LTC Price Prediction: Possible Retracement Below $60

LTC’s negative price performance in August has caused 70% of current holders to incur losses.
If panic sell-off occurs, LTC’s price could freefall toward $50.
Considerable support may come from addresses that bought LTC at an average price of $54.
If support fails, LTC could drop further below $50.
If LTC’s price rebounds above $75, the bulls could regain momentum, but there is significant resistance at $70.

Hot Take:

Litecoin (LTC) is facing significant challenges in both on-chain activity and derivatives markets. The offloading of coins by whales and the decline in LTC Futures Open Interest indicate a bearish outlook for its price. There is a real possibility of LTC dropping below $60 in the coming weeks, especially if panic selling occurs and support levels are breached. However, if LTC manages to rebound and surpass $75, it could regain momentum. The next few weeks will be crucial for LTC and its investors.