Reporting from CryptoSlate, Binance recently revealed the introduction of a new Litecoin derivative product (futures contract). When the launch date approaches, LTC shows bullish signs which can lead LTC prices to higher highs.
On January 8, 2020, the world’s largest crypto currency market based on trading volume, Binance, announced it would launch an eternal futures contract, Litecoin. The contract will be leveraged and paired with Tether (USDT).
Derivatives in the form of swaps or perpetual futures contracts will be scheduled to start trading on January 9, 2020 at 08:00 am (UTC). Traders will be able to choose leverage from 1x to 75x. Binance revealed that they would apply a ± 1 percent price limit to market prices during the first 15 minutes of trading to prevent market manipulation.
Changpeng Zhao, CEO of Binance, said that the high leverage on this contract aims to meet the demands of professional traders of the product.
Before the announcement, Litecoin jumped by almost 5 percent. Now, various technical indicators estimate that this cryptocurrency can prepare itself for further increases.
Over the past week, Litecoin showed a surge in prices of nearly 25 percent. The crypto currency changed from trading at a low level of $ 39 on January 3 to a high of $ 48.60 today (January 8, 2020).
At present, Litecoin faces strong resistance around $ 48.50. This crypto is predicted to be able to try to test the next resistance levels at $ 53, $ 57.7 and $ 64.
However, a sudden surge in selling pressure behind the LTC, which made it close below the $ 41 support level, could invalidate the bullish outlook. If this happens, Litecoin can go to lower lows.
The introduction of a perpetual contract by Binance helped Litecoin push for the highest higher scores. However, there are other fundamental aspects that predict that this crypto currency will start a new uptrend. According to Willy Woo, the LTC difficulty band recovered after going through a large decline, which can be seen as a bullish sign.
The analyst expects Litecoin to breakout in a higher direction even before Bitcoin does it. Now, it remains to be seen whether the demand for this cryptocurrency will increase to enable it to start a new bullish trend.
Litecoin, currently ranked # 6 based on market capitalization, rose 2.79% over the past 24 hours. LTC has a market capitalization of $ 3 billion with a 24-hour volume of $ 3.68 billion.