Litecoin Debuts on Binance Futures
Binance recently revealed the introduction of a new Litecoin (LTC) derivative product. As the launch date comes to close, LTC is showing different bullish signs that might set it up for higher highs
In addition to that, the world’s largest cryptocurrency exchange by trading volume, Binance, made an announcement. On January 8, it will launch Litecoin perpetual contracts. Moreover, they would leverage and pair the contracts to Tether (USDT).
The announcement states, “Binance futures will launch its sixth perpetual contract, LTC/USDT.”
On January 9, they scheduled the perpetual swaps to start trading. Additionally, traders can officially choose any leverage from 1x to 75x. Also, Binance disclosed that it would impose a pricing limit of ±1 percent on the market price. This will only be during the first fifteen minutes of trading to avoid market manipulations.
Binance’s CEO, Changpeng Zhao, stated that the high leverage on these Litecoin contracts wants to meet professional trader’s demand for such products.
Zhao explained, “We have seen an increase in institutional participation in trading. These professional traders seek out the most efficient ways to trade very quickly, both in terms of cost and performance.”
Aside from that, the CEO also indicated that Binance Futures systems’ performance far outstrips a lot of other platforms in the market. As a result, it allows users to smooth trading experience. For some time now, the market has been asking for a product with superior stability and performance, and they are finally providing them with one.
Before the announcement, Litecoin boosted to almost 5 percent. A variety of technical indicators estimate that this crypto might be preparing for another advance.
Technical Analysis
Last week, Litecoin saw its price move up to almost 25 percent. Thus, it went from trading at a low of $39 on January 3 to a high of $48.60 today.
Moreover, the bullish impulse happening in the last few days took the moving averages to form a golden cross on LTC’s 1-day chart. The chances of a significant bullish breakout further increased as the 7-day moving average crossed over a 30 and 50-day moving average. A lot of investors see this technical pattern as one of the most definitive and powerful buy signals that might begin a long-term bull market.
As of now, Litecoin is experiencing a strong resistance around $48.50. And breaking above this level might let the uptrend continue. After that, this crypto can try to test the next level of resistance at $53, $57.7, and $64.
Nonetheless, the surprising spike in the selling pressure behind LTC that takes it to close below the $41 support level could invalidate the bullish outlook. And if this will happen, Litecoin might target lower lows.
Now, the introduction of perpetual contracts by Binance supported LTC to push from higher highs. However, other fundamental aspects estimate that this cryptocurrency will start a new uptrend.
Based on Willi Woo, LTC’s difficulty ribbon is reviving after going through a significant decline – seen as a bullish sign.
Woo noted, “Litecoin Difficulty Ribbon now in recovery. Should set up a bullish breakout of the bearish channel.”
Furthermore, the analyst believes that LTC will breakout in an upward direction even before Bitcoin (BTC) does. It remains to be seen if the demand for this cryptocurrency will surge to let it start a new bullish trend.
