- Summary:
- Liquity Price has broken above the range highs of $0.838. If bulls gain momentum, I expect a retest of the $1 level very soon.
After a strong rebound from its September lows, Liquity price has started to show some weakness. The price has fallen for the second consecutive day, down 1.52% on Friday. The negative price action could be attributed to the deteriorating macroeconomic conditions.
Bitcoin price retested its weekly lows last night before getting a bounce. At press time, the leading crypto token changed hands at $26,584 after increasing only 0.11% on Friday. After a steep decline in the first two weeks of the month, LQTY price is up 14% from the lows.
TVL Increases By 50% In Liquity Protocol
Decentralized finance tracking website Defi Llama shows that the total locked value in Liquity dapp has increased by almost 50% since the start of 2023. The lending protocol with 0$ interest rate currently holds $632 million worth of TVL. The total locked value stood at only $427 million at the start of this year.
DEFI Protocols Face Regulatory Backlash
After a 546% surge at the start of 2023, Liquity price is currently trading only 46% above its yearly lows. The price action of the native asset of the top lending protocol seems to have been significantly impacted by the regulatory scrutiny against the crypto businesses.
Liquity Price Technical Analysis
LQTY coin is the native asset of the Liquity protocol. Currently, the coin is down 78% from its yearly high. In the past 24 hours, $7.1 million worth of LQTY has been traded across different crypto exchanges. The digital asset has been trading within a very narrow price range since a strong sell-off in August.
On the 4H timeframe, the price has broken above the range highs of $0.838. Even though the high timeframe Liquity price prediction remains bearish, a reclaim of $0.838 may send the price toward the key psychological barrier of $1. This would be a more than 16% increase from the current price level. The invalidation of this outlook will be acceptance below the $0.838 range highs.