Litecoin (LTC) price rose to a 14-day high of $88 on April 26th, and highly leveraged SHORT traders are now at risk of huge liquidation losses.
Litecoin market cap increases by $195 million in 24 hours
Crypto investors hedging against a post-halving crash this week saw prominent proof-of-work (PoW) coins such as BTC, DOGE, and BCH struggle to regain momentum. did.
However, in an interesting development, Litecoin price bucked that trend on April 26, jumping 3% to a 14-day high of $88. The move increased LTC’s market capitalization by $195 million.
Litecoin Price Movement | April 2024 | TradingView Zooming out, LTC price rose 27% in late April. An additional 10% rally could reach a new 30-day high above the $100 milestone.
However, early market signals suggest that the rise in LTC prices was primarily driven by speculative traders who were aggressively bullish in the derivatives market.
LTC Bulls mount $18 million leverage position
In the derivatives market, Litecoin bulls are applying extraordinary levels of leverage in the overwhelming expectation that it will rally further towards the $100 milestone.
Coinglass’ liquidation map data shows the value of active leveraged futures contracts at key LTC price levels, further supporting this bullish Litecoin price outlook.
As seen below, the number of LTC LONG leveraged positions currently significantly exceeds SHORT, indicating that derivatives traders have overwhelming expectations for further price increases.
Litecoin LTC Liquidation Map and Price | Coin Glass
LTC short traders are currently at risk of losing $15.6 million in potential liquidation if the price rises another 10% to regain the $97 area. Meanwhile, bulls have amassed over $18 million worth of leveraged long positions around the current price.
Given that the leveraged long position outweighs the short contract by more than $3 million, Litecoin bulls are likely to put pressure on the price towards $100 in the coming days.
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