Investors with massive holdings are grouped under the name of whales, and their movements can have serious consequences on prices. Current data shows that there were significant sales for Litecoin in August. So, how low can the price of LTC drop in the coming days? Is there a possibility of recovery for this popular altcoin?
Litecoin (LTC) Expert Opinion
The price of Litecoin (LTC) turned back from $70 during a slight price jump earlier this week. The price has been stuck in the range of $65-68, and it has been revealed that whales have made significant sales. Litecoin whales seem to be focused on the historical halving performance as they made numerous sales last month.
The negativity among Litecoin whales seems to be an important factor exacerbating the downward trend in LTC price. According to on-chain data compiled by Santiment, crypto whales holding between 10,000 and 10 million LTC went into a selling frenzy in August. The chart below shows that the total balances, which were 47.12 million LTC on July 31, decreased to 46.7 million.
According to the current market value of $63, these sales amount to $27 million. In bear markets where volumes dwindle and demand reaches exhaustion point, this is a significant amount.
LTC Coin Predictions
Activity in LTC derivative markets also indicates a downward trend. According to Coinglass, LTC Futures Open Interest has fallen to its lowest level since the infamous collapse of FTX that devastated the crypto markets since November 2022. As shown below, as of September 1, LTC Open Interest is currently at $238 million, down 56% from the $543 million recorded about a month ago.
Open Interest summarizes the total value of active or yet-to-be-settled derivative contracts of an asset. The decrease here indicates a weakening interest in the derivative markets as well.
The 33% negative price performance of LTC in August has caused losses for 70% of current investors. If this leads to an accelerated panic sell-off, we may see a free fall towards $50. Below this range, there is a critical range of $46 and $38.
