Liquity (LQTY) is a decentralized borrowing protocol that allows users to take out interest-free loans using Ether as collateral. The loans are paid out in a USD-pegged stablecoin called LUSD, and borrowers must maintain a minimum collateral ratio of 110%.
Loans are secured by a Stability Pool containing LUSD and by fellow borrowers acting as guarantors. Liquity is a non-custodial, immutable, and governance-free protocol.
In this article, we will examine the current price and news of Liquity and provide some insights into its future prospects.
LQTY Price Analysis
LQTY has been trading in a bullish trend since September 29, when it broke above the $0.80 resistance level.
Facing final resistances, if gets rejected will bleed, incase breaks out might follow upward trajectory.
LQTY is currently ranked as the 162nd largest cryptocurrency by market capitalization, with a value of $95.33 million. It has a circulating supply of 93.61 million tokens and a maximum supply of 100 million tokens. The 24-hour trading volume is $62.07 million, which is higher than the average volume of $50 million in the past week.
LIQUTY Price Prediction: Can It Maintain Its Bullish Momentum?
LQTY has been following a channel pattern since September 29, when it broke above the $0.80 resistance level. This indicates an uptrend that is characterized by higher highs and higher lows. The channel’s resistance and support lines can be drawn by connecting the swing highs and lows on the daily chart.
LQTY is currently trading near the upper boundary of the channel, which could act as a strong resistance level. If LQTY can break above this level and sustain its bullish momentum, it could signal a continuation of the uptrend and a potential rally towards higher price levels. The next resistance levels to watch are $1.10 (the high of August 15) and $1.20 (the high of July 7).
However, if it fails to break above the channel’s resistance line and retraces back towards the lower boundary of the channel, it could indicate a correction or a reversal of the uptrend. The next support levels to watch are $0.90 (the low of September 28) and $0.80 (the low of September 21).
The relative strength index (RSI), which measures the momentum and strength of price movements, is currently at 56.67 on the daily chart, indicating a neutral sentiment. However, if the RSI can rise above 60 and enter the bullish zone, it could suggest an increase in buying pressure and a possible uptrend.
Conclusion
LQTY is the secondary token issued by Liquity, capturing fee revenue and incentivizing early adopters and frontends, with a total supply cap of 100,000,000 tokens.
LQTY remains a promising DeFi protocol that has a lot of potential to grow and succeed in the future. However, LQTY also faces some risks and uncertainties that could affect its price and performance. Therefore, investors and traders should always do their own research and analysis before making any investment decisions regarding LQTY or any other cryptocurrency.
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