Litecoin Shows 4% Gain During Early Asian Session
Litecoin (LTC) rose by 4% in early trading on Wednesday in Asia. This follows a short recovery after three days of decline in the broader crypto market. However, Litecoin’s fundamentals remain neutral. The number of LTC coins in profit dropped to 57%, leading to a slight increase in selling. This included both profit-taking and loss-cutting by investors, according to Santiment data. Most selling came from investors who bought LTC within the last two months.
LTC Derivatives Show Signs of Bearish Pressure
On the derivatives market, Litecoin futures funding rates turned negative twice in two days. This means short sellers are gaining control over the LTC futures market. Funding rates are payments between traders to keep futures prices close to the true spot price. When rates are negative, shorts pay longs, and vice versa when rates are positive. Litecoin’s open interest grew slightly to 5.57 million LTC but remains below pre-October 10 levels of 8.80 million LTC.
Litecoin Faces Resistance Near $95
Litecoin found support at $90.2 but struggles near the $95.4 resistance level. If LTC rises above $95.4, it will face another challenge at key moving averages (50-day, 100-day, and 200-day EMAs). If LTC fails to hold $90.2 support, it could drop to $80. Technical indicators like the RSI and Stochastic Oscillator suggest bearish momentum is currently strong.
