Litecoin noted a sharp fall on 15 November, a fall that caused its price to fall from $59.97 to $55.63. This 7.24% fall was followed by the price of the coin climbing up. However, it fell soon after the rise. The price of Litecoin at the time of writing hovered at around $58.07 with a market cap of 3.75 billion, while noting a trading volume of $2.90 billion.
Despite the falling price, however, Litecoin noted the formation of a bullish pattern that might provide a boost to its price.
The hourly chart for Litecoin [LTC] saw a descending channel extending along with the falling price. The pattern, characterized by two sloping trend lines, marked the lower highs of LTC at $60.26, $59.16, and $59.03 and lower lows at $59.38, $58.94, and $58.53. As the price remained constricted within the downward trend, a breach in the pattern might lead to the price of LTC surging.
The 50-day moving average underwent a crossover with the 100-day moving average, indicating a bullish move. The 100-day moving average dominated the LTC market for over five days and the coin lost 4.08% of its value. However, with the 50-day MA leading the charge, an upward surge might be coming soon.
The MACD indicator noted strong bearish momentum in the market, as the MACD line remained dormant under the signal line. On the other hand, the Relative Strength Index highlighted a change in tides as the signal line bounced back from the oversold zone and was pointing up.
Litecoin’s falling price might find respite with a breach of the descending channel. However, the coin might undergo further devaluation before it could note a spike.
Dai savings rate may bring added advantage to DeFi ecosystem
DAI will be upgrading to a multi-collateral mechanism on 18 November, which will include new features to Maker Protocol like Dai Savings Rater [DSR]. According to MakerDAO, DSR will enable Dai holders to earn savings by locking their Dai stablecoin into the DSR contract. DSR offers benefits to most holders, traders, startups, and businesses, also promised services in the DeFi ecosystem.
The CEO of Maker Foundation, Rune Christensen said:
“The most amazing aspects of the DSR are that it has no counterparty credit risks and it can be implemented on the backend of any DeFi product that uses Dai. The inherent efficiency of the Maker Protocol and, by extension, the DeFi ecosystem, are what allow the DSR to provide great savings opportunities for people everywhere.
MakerDao, a decentralized organization on the Ethereum blockchain and developer of Dai, innovates solutions for the DeFi ecosystem using its stablecoin. According to DeFi pulse, 85% of all DeFi projects on Maker were built on Dai and that the company had $433 million locked up for DeFi projects.
Dai’s supply in circulation grew multi-fold and reached nearly 100 million. The highest daily number in circulation till October 2019 was reported to be 95,451,247, while its daily supply approached 84 million. Compound, the largest Dai holder, controls 17.11% of the total supply, closely followed by dYdX. The graph below highlights the daily borrow volume of Dai across DeFi projects:
The following graph compared monthly lending activity across the DeFi projects mentioned above.
The data above indicated that the lending percentage on dYdX was on the rise and the total borrowing of Dai on dYdX surpassed MakerDAO. Anyone building DeFi products using the stablecoin Dai might look at the added advantage of DSR. The initial value for the DSR will be determined by executive Vote and will be announced at the launch of Multi-Collateral Dai.