Litecoin concluded a bearish week with no significant recovery, struggling to climb back above $100. Will it manage to do so amid market uncertainties?
Current Pricing Situation and Support
Litecoin ended the previous week on a bearish note, dropping below $100. Initially at $99, it was down by 23% from its highest point in the past 7 days. It subsequently fell another 7.53% to reach a new low of $96.06. The support level at $97 suggests a potential bounceback if enough demand materializes, though a failure could lead to further declines.
Market Risks and Uncertainties
Litecoin was among the top 50 cryptocurrencies with the largest decline this week. Fear, uncertainty, and doubt driven by recession concerns have bolstered bearish sentiment, causing investors to adopt a cautious stance. On-chain data, especially in derivatives, confirms this trend: liquidations hit monthly lows due to low demand in derivatives, consistent with a decline in open interest from $915.72 million on February 20 to $465.75 million recently.
Whale Activity and Market Dynamics
Bearish market conditions have also unsettled significant investors. Whale activity sharply fell from 244,330 LTC on March 5 to 81,890 LTC by March 7. Despite the decline, some whales have been accumulating, as evidenced by a net positive gain. Trader balances increased from 8.06 million LTC at the start of February to 12.19 million coins, while long-term holder balances grew slightly from 38.63 million LTC to 39.4 million, suggesting some investors are capitalizing on lower prices.
Litecoin's market situation remains unstable, with reduced investor activity, yet some still eye opportunities at current low prices. The future trend hinges on the cryptocurrency’s ability to reclaim ground above $100.
