LTC/USD: 38% of crypto-focused hedge-funds trade Litecoin
|- Litecoin is popular among crypto-focused hedge funds.
- LTC/USD may continue sidelined trading with a bearish bias.
The total value of assets managed by cryptocurrency-focused hedge funds has increased significantly in 2019, according to the recent survey, provided by PwC and Elwood Asset Management Services. The investment company that specializes in virtual assets found out that the total value of assets under management (AUM) increased by more than $1 billion in 2019, which was partially caused by Bitcoin’s price recovery after the crypto winter.
Notably, 38% of respondents in the survey said that they had been trading Litecoin among other digital assets.
It is interesting to note that Litecoin was mentioned by funds as one of their top traded altcoins despite its market cap being relatively smaller than the other mentioned altcoins, the report said.
According to PwC’s Arslanian, the crypto hedge fund industry will continue growing over the coming years as it is the easiest way to gain exposure to the new class of assets for the institutional investors.
LTC/USD: Technical picture
Litecoin is the seventh-largest digital asset with the current market capitalization of $2.6 billion and an average daily trading volume of $4.5 billion. The coin has lost over 2.7% in the recent 24 hours amid widespread collapse on the cryptocurrency market ahead of Bitcoin’s halving. At the time of writing, LTC/USD is changing hands at $41.15, after a short-lived dip below $40.00 on Sunday.
On the daily chart, LTC/USD got back above the lower line of the Bollinger Band at $41.00; however, the recovery is capped by daily SMA50 located on the approach to $43.00. Once it is out of the way, the upside is likely to gain traction with the next focus on $45.50 (the middle line of the daily Bollinger Band) and $47.00 (Sunday’s high). A move above this level will compensate the sell-off and bring the recovery back on track.
However, the daily RSI still points downward and shows no signs of reversal. It means that the coin is vulnerable to range-bound trading with bearish bias at least until the risk event is behind us. The local support is created by the above-said lower line of the Bollinger Band at $41.00. If it is broken, the sell-off may be extended towards the psychological $40.00.
LTC/USD daily chart
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