Litecoin Transactions Revealing Possible Market Bottom
Despite the recent depreciation in the value of Litecoin (LTC) and several other major cryptocurrencies, the increase in loss transactions could herald an upcoming market recovery. In the recent months, Bitcoin (BTC), Ethereum (ETH), XRP, Litecoin, and Cardano (ADA) each recorded remarkably high volumes of loss transactions compared to profit taking. Data shows that such a trend of loss-making transactions has peaked to a five-month high for these cryptocurrencies.
Cryptocurrency Trading Trends Reflect Potential PriceTurnaround
The ratio of traders suffering losses to those making profits in these cryptocurrencies is at its highest level since March, according to data from crypto intelligence tracker Santiment. Historically, a high ratio of loss transactions, relative to profit taking, has predicted a potential rebound in asset prices.
The situation is reminiscent of the beginning of March, when similarly prevalent loss transactions were followed within a fortnight by a bounce in altcoin prices. Despite macroeconomic catalysts and significant developments in the crypto ecosystem, there has been a surge in loss transactions since March 1, especially in BTC, ETH, XRP, LTC, and ADA when compared to profit taking transactions. If the trend repeats itself as often seen, a short-term recovery in the prices of these digital assets is likely.
Factors Underpinning Price Movements
According to one analyst on Twitter, the pattern of Bitcoin price movements is currently similar to the bear market bottom seen in 2015. Labeling the ongoing cycle as an accumulation season, there is an expectation of a cryptocurrency rally in the next few months. Additionally, macroeconomic developments such as the recent Consumer Price Index (CPI) and Producer Price Index (PPI) reports suggest Bitcoin’s price sensitivity to data releases and events.
Litecoin’s Performance & Expectations
Litecoin (LTC) has recently come under intense bearish pressure, leading to many investors seeking alternatives. Its price deteriorated by 1.01% within the last 24 hours, bringing the coin’s value down to $82.13. Consequently, it trades below both the 50-Day SMA ($92.41) and the 200-Day SMA ($90.08).
Currently, Litecoin’s Relative Strength Index (RSI) stands at 37.30, reflecting a neutral stance within the LTC market. However, there are possibilities of LTC dipping slightly to the $80 mark before recovery ensues.
What do you think of these recent trends in the Litecoin market? Will the surge in loss transactions lead to a price rebound soon? Share your thoughts in the comments below.
