- Litecoin price is back in the green, guided by a V-shaped recovery pattern.
- Whales return, scooping up lower-priced LTC amid a quick rebound above $60.00.
- Litecoin price holds above solid support areas as hurdles weaken to pave the way for a trend reversal.
- A daily bullish candlestick close above the 61.8% Fibonacci will help thwart a potential retracement in LTC price.
Litecoin price and the crypto market, in general, are moving on swiftly against the backdrop of the bloody mess left behind by the embattled FTX exchange. LTC is up a whopping 15% on the day to exchange hands slightly above $60.00.
The progress made by Litecoin to $73.31 in the first week of November came undone over the last few days as investors rushed to withdraw funds from FTX, which resulted in a liquidity crunch – and suspension of withdrawals.
What’s next for FTX – industry leaders chime in
The events at FTX have brought to light some of the behind-the-scenes goings on of a young industry trying to get regulatory approval globally. According to Alex Adelman, the CEO and co-founder of Lolli, a platform that rewards shoppers in Bitcoin, the cryptocurrency ecosystem is bound to change following the implosion of FTX. Adelman reckons that a lot of work will need to be put in place to rebuild trust and ensure this does not happen again.
“To even begin to rebuild consumer trust, there must be a holistic reevaluation of how crypto companies operate. When companies rely on and collateralize their alternative currencies to inflate their balance sheets, they undermine not only their clients’ funds but the financial health and integrity of the crypto ecosystem at large,” Adelman said, referring to FTX.
On the bright side, the Managing Director at Bitget, Gracy Chen, has offered support to FTX and Almeda, saying they deserve help to solve the liquidity shortage. Chen reckons that FTX and Almeda have bailed out struggling crypto companies over the years and cannot be left to collapse.
— Gracy Chen (@GracyBitget) November 10, 2022
Litecoin price technical outlook flips bullish
Litecoin price posted double-digit gains as investors readjusted their portfolios in the wake of the crash this week. The four-hour time frame chart shows an ongoing V-shaped recovery that could see LTC achieve a 100% retracement to its highest level on Monday at $73.31.
It is worth mentioning that Litecoin price has already exhausted a 61.8% Fibonacci retracement at $64.28. Bulls must push the price to break and hold above this level to validate movement to $73.31.
LTC/USD four-hour chart
The Moving Average Convergence Divergence (MACD) calls sidelined investors into the market as it inches closer to the mean line and possibly stretches into the positive region (above 0.00).
Meanwhile, investors who sold LTC as the crypto market bled this week are probably back to buy the token again, but at relatively lower prices. The Supply Distribution metric by Santiment shows that addresses with 10,000 to 100,000 now hold 18.10% of the network’s total supply, up from 18.01% recorded on November 8. Litecoin will likely strengthen its bullish outlook as whales intensify buying activities.
Litecoin Supply Distribution
Traders should be aware of the prevailing short-term overbought conditions. The Stochastic oscillator in the four-hour time quickly recoiled from the oversold region (below 30.00) and is now in the overbought region at 96.57, as LTC rebounded from support at $49.55. Although a retracement could be in the offing, it is likely to be temporary because bulls may use the opportunity to collect more liquidity ahead of another strong upswing in price.