In recent weeks, Litecoin has shown significant price swings, garnering attention from short-term traders. The number of such users grew by 12%, reaching 560,000 addresses, influenced by potential ETF approval expectations.
Litecoin Short-Term Trading
In early February, the number of traders rose sharply, although initially decreased to 500,000 in late January. These fluctuations reflected a volatile response from traders to news and market sentiment.
Potential Scenarios for Litecoin’s Price
Increased trading activity could lead to higher price volatility. If ETF news continues to generate interest, sharp price movements are expected. Conversely, without significant follow-through or ETF approval, a correction might occur.
Why Litecoin Price Drop Is Key
Litecoin price hit a critical level at $124.23, just above a significant support at $116.06. Should buyer momentum persist, it might stabilize or rebound to resistance near $133.92. Otherwise, a drop to the $104-$108 support is likely.
Despite current technical setups, short-term tension builds up. The upcoming weeks will determine if the price can maintain current levels or see further descent.
