At the time of writing this article, the price of Bitcoin is currently at $27,500 and its upward momentum has temporarily turned into a support defense. Despite the positive ADP data released today, Bitcoin did not experience the expected increase. Furthermore, DXY has also experienced a slight pullback. So, what is the current situation in the LTC market?
Litecoin (LTC) Analysis
Since hitting a low of $58 in mid-September, the LTC price has been struggling to reach higher levels. This recovery was capped off with a test of $70 on Monday. On-chain data is sending important signals about the future price movement.
Despite the improvement in overall market sentiment, the Monday rally was limited for LTC. Following the halving event on August 2nd, whales started to take action as the price hit rock bottom. The IntoTheBlock chart shows that LTC Whale Transactions, which had reached 1,800 transactions on September 10th, reached a peak of 2,900 transactions on Friday, marking the highest level in 40 days.
After reaching its peak, whale transactions decreased by 30% today compared to September 29th, dropping to 2,040. This significant decrease in whale demand is considered a negative signal for the price.
LTC Price Predictions
There is an interesting detail in the Order Book graph, which shows the price distribution of current active Litecoin orders. Despite the liquidity of 1.6 million in sell orders, the demand is only at 1.5 million LTC within the same range. This confirms that bears have regained dominance.
With such high selling liquidity and weak whale demand, it seems unlikely that the LTC price will surpass $70 in the short term. The lack of movement in Litecoin prices indicates that new lows below $60 are possible.
If whales do not intervene, panic selling by LTC holders with an average of $65 could accelerate the decline. On the other hand, the overall market sentiment also seems to remain negative until Friday. Developments in the macro sphere, such as employment and wage growth data, will likely impact the risk markets before the weekend.
While DXY is currently moving away from the fourth-quarter peak of last year, it continues to trade within the rising parallel channel. If Wage Increases, TDI, and Unemployment data turn against cryptocurrencies, we could see a strong dollar rally up to the 115 level after surpassing 108. This could trigger double-digit losses in the crypto market.
