Litecoin (LTC) to recover from overall weekly losses as Whales return.
A V-shaped recovery pattern is helping the price of litecoin return to the green. Whales are back, buying LTC at cheaper prices as it rises above $60.00. As barriers deteriorate to open the door for a trend reversal, the price of litecoin maintains above strong support levels.
The current situation
A daily bullish candlestick close above the 61.8% Fibonacci level will help prevent the price of LTC from possibly retracing. Against the backdrop of the terrible mess the troubled FTX exchange left behind, the price of Litecoin(1) and the cryptocurrency market generally progressed quickly. LTC is trading at a little bit over $60.00, up a stunning 15% on the day. As investors hurried to withdraw money from FTX, a liquidity bottleneck and withdrawal restriction occurred, undoing the gains gained by Litecoin to $73.31 in the first week of November.
FTX’s future plans
The FTX events have exposed some of the behind-the-scenes activities of a new sector seeking international regulatory sanction. The CEO and co-founder of Lolli, a platform that pays users in Bitcoin, Alex Adelman, predicts that the cryptocurrency ecosystem will shift as a result of the collapse of FTX. Adelman believes that significant effort will be required to restore confidence and guarantee that this does not occur again.
A comprehensive review of how crypto businesses conduct their business is necessary to restore customer trust. Companies that rely on and use their alternative currencies as collateral for inflated balance sheets endanger not just their clients’ money but also the stability and financial health of the whole crypto ecosystem, according to Adelman, who was referring to FTX.
On the plus side, FTX and Almeda have received backing from Bitget’s Managing Director, Gracy Chen, who claims they deserve assistance in addressing the cash issue. According to Chen, FTX and Almeda have helped several crypto enterprises in need over the years and can’t be allowed to fail.
What analysts concluded
Technical analysis of the Litecoin (2) price turns positive. In the aftermath of this week’s meltdown, investors readjusted their portfolios, resulting in double-digit rises for the price of Litecoin. A continuing V-shaped recovery is shown on the four-hour time frame chart, which might result in LTC reaching a 100% retracement to its Monday high of $73.31. It is important to note that the price of Litecoin has already reached its 61.8% Fibonacci retracement level at $64.28. For a move to $73.31 to be credible, bulls must force the price to break and hold above this level.
