Liquity Price Tanks 10% After Rejection From Range Highs
Liquity price isn’t having a great day as the native asset of the Liquity protocol slid 14% on Friday. This move comes after the coin attempted to break above its range high of $1.48. Currently, LQTY crypto is changing hands at $1.267, as it trades 14% below the range high, which we’ll discuss later.
Liquity’s failure to break above its trading range can be attributed to Bitcoin’s recent price action. This week, Bitcoin slid 4% after facing rejection from the 200 MA on its daily chart. This move translated into a sell-off in the altcoins, as most plummeted to their fresh October lows.
Earlier in October, the developers of the Liquity Protocol announced the unlocking of 657,350 Liquity tokens, which represent 0.7% of the current circulating supply. This can put downward pressure on the Liquity price as more LQTY coins flood into the market.
The data from DefiLlama shows the total locked value(TVL) on the Liquity dapp has been in a downtrend since April 2023. During this time, the TVL has dropped from $833 million to $533 million. This suggests that the number of users on the decentralized protocol is reducing.
For the past few days, altcoins have been bleeding as the investors fear of a deeper correction in Bitcoin.
Liquity Coin Price Analysis
LQTY price has soared 108% from its September lows. Earlier this week, the price broke above its range high of $1.47. However, this effort was undone by the negative BTC price action as the largest cryptocurrency fell below $27,000.
The Liquity coin price prediction has flipped bearish after a rejection from the range high. Bears are now gaining momentum toward the downside. In the near term, I expect the bears to target the middle of the trading range, which lies at $1.10. However, a breakout from 1.47 will be an invalidation of this bearish outlook.