Litecoin, a peer-to-peer cryptocurrency, has remained in a consolidation phase recently. Despite muted futures interest, there has been a significant increase in whale activity.
Increase in Litecoin Whale Activity
Litecoin, created by former Google engineer Charlie Lee, was trading at $64, maintaining this range for the past two weeks. This price is 27% above its lowest point in August and 44% off its yearly high. Increased whale activity suggests potential buy-the-dip opportunities.
Current Litecoin Market Metrics
According to Santiment, the number of active addresses has significantly declined in recent months. As of September 6, there were over 327,000 active addresses, down from 801,000 in June. Additionally, Litecoin's futures open interest has also declined. As of September 7, it stood at $243 million, far below the year-to-date high of $708 million.
Litecoin Forecast: Support Levels
Technically, Litecoin is trading below the descending trendline connecting the highest swings since May 20. The cryptocurrency also remains below its 50-day moving average, indicating a possible further decline. Should the support level at $60 break, a drop to $50 — the lowest point in August — may occur. Conversely, a volume-supported breakout above the descending trendline would signal potential further gains.
Despite the decline in futures interest, Litecoin shows increased interest from major holders. It is essential to monitor the key support levels and potential scenarios as the situation evolves.
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