Livepeer Defies Gravity with Sharp Rally—But Traders Brace for a 40% Plunge

Livepeer’s token surges as decentralized video streaming gains traction—until the charts whisper ’correction incoming.’

Technical indicators flash red despite bullish momentum. A 40% drop could be lurking—classic crypto whiplash.

Another day, another altcoin teasing traders with fleeting gains before the inevitable reckoning. Just hedge your bets, folks.

Another reason the Livepeer rally may lose steam is that the funding rate has dropped to its lowest level in months. It fell to minus 1.7%, one of the steepest declines in recent years. A falling funding rate suggests that traders expect the future price to be lower than the current level.

Additionally, LPT gained traction after Grayscale included it on its list of top crypto projects in the artificial intelligence sector. Other coins on the list include Bittensor, Near, Render, and Worldcoin.

Introducing the Artificial Intelligence Crypto Sector.

The #AI Sector includes 20 tokens with a combined market capitalization of $20 billion — up from just $4.5 billion in Q1 2023*.

Learn more about the AI Crypto Sector: https://t.co/LmvVvv9WHr

*Source: Artemis, Grayscale… pic.twitter.com/xrlPMBYK2o

Livepeer price technical analysis

The daily chart shows that LPT surged suddenly, forming a God candle that pushed the token to its highest level since January 23. It broke above key resistance at $6.67, the previous high from May 15.

Livepeer also climbed above the 50-day and 100-day Exponential Moving Averages, with all oscillators spiking.

The most likely scenario is a loss of momentum and a pullback, possibly toward the support level at $6.67, a 40% drop from current prices.