Litecoin (LTC) Price Prediction: LTC/USD Bulls Target $70 by Year-End as Whale Accumulation Spikes

Litecoin price has been in a period of consolidation, with futures market open interest remaining subdued despite a rise in activity from large holders, often referred to as whales.

Litecoin price showed a 1% gain on September 7, reaching the $60,73 price point. This occurred as the cryptocurrency experienced a 4.81% increase in its trading volume compared to the previous day.

According to recent analysis, the coin could reach $70,97 by year's end. Litecoin's price movements have mirrored those of Bitcoin, which reached an all-time high of $73,800 in March before dropping to $49,000 in August. Bitcoin is currently trading at around $54,000.

Data from Santiment showed a notable increase in whale purchases of Litecoin in recent weeks, indicating that large investors are taking advantage of the lower prices.

The platform also reported a surge in social media mentions for Litecoin, suggesting growing interest in the asset.

However, a major concern for Litecoin is the subdued activity in its futures market. On Saturday, September 7, the open interest in its futures was only $243,089,800, which is a significant drop from the year-to-date peak of over $708 million.

Open interest in futures is a crucial indicator in financial markets as it reflects the total number of outstanding contracts that have not yet been settled.

Typically, a higher open interest indicates greater demand among investors for the cryptocurrency.

In addition, the funding rate for LTC has decreased significantly, moving from 0.078% earlier in the week to just 0.0016%. A positive funding rate usually means that holders of long positions are paying a fee to those holding short positions.

The near-negative current rate poses a risk of further declines, suggesting a potential decrease in demand for holding long positions in LTC futures.

From a technical perspective, Litecoin is exhibiting signs of weakness as it remains below the descending trendline that connects the highest price swings since May 20. It is also trading below its 50-day moving average, which suggests potential further declines.

Should this downward trend continue, LTC, which is one of the largest proof-of-work cryptocurrencies, could fall to its next critical support level below $60, which was the lowest price it hit on January 3.

If it breaks below this support, the next significant level to watch is $50, which was its lowest point in August. Conversely, if there is a volume-supported rise above the descending trendline, it could indicate potential for more substantial gains.

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