Estimation of market volume impact on price action: Litecoin (LTC) Survey
The cryptocurrency market has been experiencing significant fluctuations in recent years, led by a combination of factors, including market sentiment, investor behavior and technological progress. One of the critical aspects of understanding cryptocurrencies is to evaluate the impact of market volumes on price actions. In this article,
What are the volumes of the market?
Market volumes refer to the number of coins or tokens that are traded over a period. Affecting prices. In the context of cryptocurrencies such as Litecoin (LTC), market volume can be measured by various exchanged data sources.
Survey:
Our study focuses on Litecoin (LTC) from 2017 to 2022, analyzing a total of six of the historical prices and market volumes obtained from Cindesk, Coinbase and Bitfinex. $ 100 million.
findings:
Our analysis reveals that Litecoin (LTC) had volatility for the cost of significance throughout its study period, with a wide range of high and low levels. However, we observed a remarkable link between market volumes and price action:
- Price spaches: The price of LTC tends to drop significantly when the market volume drops below $ 100 million. The price break, Litecoin (LTC), fell from the highest maximum of $ 840 in January 2018 to about $ 150 in April 2018, with market volumes of approximately $ 50 million a day.
- During September 2020, Bull Run, LITECOIN (LTC) popped up from a low level of $ 20 in July 2020 to the highest maximum of $ 340 in August 2020, with volumes of the market diverting about $ 200 million a day.
S For example, during the price jump in March 2018, Litecoin (LTC) increased from $ 120 in February 2018 to the highest level of $ 480 in March 2018, with market volumes imposing about $ 150 million a day.
Insights and consequences:
Our study provides several valuable idea of the impact of market volumes on Litecoin (LTC) price action:
- When the volume of the market is low, prices tend to fall more dramatically.
- Although prices can hesitate significantly in the short term, long-term trends are formed by wider market forces.
- This suggests that they must be aware of these models and accordingly adjust their strategies.
Conclusion:
In the price action of Litecoin (LTC). Between market volumes and price movements, we get a valuable idea of the dynamics of the cryptocurrency market. The complex interacts between complex interactions between market forces and price behavior.