Deep Dive
1. KuCoin Margin Delisting Impact (Bearish)
Overview: KuCoin delisted LPT from cross-margin trading on 23 December 2025, forcing users to close positions or face liquidation. While this occurred 37 days ago, residual effects linger as traders rebalance portfolios.
What this means:
- Reduced access to leveraged trading limits speculative demand.
- Over 2.3M LPT flowed to exchanges post-delisting (per historical news), creating persistent sell pressure.
- Turnover ratio (volume/market cap) of 0.147 signals thin liquidity, amplifying downside volatility.
What to watch: Exchange balances via on-chain tools like Glassnode.
2. Technical Breakdown (Mixed)
Overview: LPT broke below the 78.6% Fibonacci retracement level ($3.03) – now acting as resistance. MACD histogram turned positive (+0.025), but RSI (50.24) shows neutral momentum.
What this means:
- Short-term traders likely exited after the failed retest of $3.19 pivot point.
- 200-day EMA at $4.83 remains 37% above current price, signaling long-term bearish structure.
- Mixed signals create uncertainty: MACD suggests bullish divergence, but volume confirms selling.
Key level: A sustained close below $3.03 could target $2.77 (2025 low).
3. Market-Wide Risk Aversion (Bearish)
Overview: Crypto fear & greed index sits at 38/100 (“Fear”), with total market cap down 4.93% in 24h.
What this means:
- LPT’s 90-day correlation with BTC is 0.84 – moves tightly follow Bitcoin’s trajectory.
- Derivatives open interest fell 7.58% sector-wide, reducing altcoin leverage fuel.
- Spot volumes dropped 14.93%, indicating capital flight to stablecoins.
Conclusion
LPT’s decline reflects a mix of exchange-specific headwinds, technical breakdowns, and macro risk aversion. While oversold conditions (RSI 48.74 weekly) could enable a bounce, the lack of near-term catalysts like major protocol upgrades (next roadmap milestone: 1 Feb 2026 capital management changes) limits upside potential.
Key watch: Whether $2.77 swing low holds – a breakdown could trigger algorithmic selling from quant funds tracking Fibonacci grids.