Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
- Litecoin fell right into a zone of sturdy assist from the mid-range, bullish order block and a high-volume node
- This might nonetheless fail if Bitcoin stumbles beneath $16.2k within the subsequent couple of days
Litecoin [LTC] offered a barely dangerous shopping for alternative on the value charts. Threat-averse merchants ought to watch for 19 December’s buying and selling to set a course for Litecoin within the coming week. Nonetheless, the pattern has been bearish in latest days.
Learn Litecoin’s [LTC] Price Prediction for 2023-24
Late in November, Litecoin retested the previous vary highs as assist and bulls sought to push the costs again above $80.65. Their efforts had been met with better promoting stress. The weak point of Bitcoin [BTC] noticed Litecoin lose $73.4 as assist.
Litecoin falls again into the vary: can the bulls defend $60?
Supply: LTC/USDT on TradingView
Since June, Litecoin has traded inside a variety from $73.4 to $50.2. The mid-point of this vary lay at $60.5. This stage additionally has confluence with a bullish order block on the day by day timeframe that LTC shaped on 21 November.
Subsequently, a bullish dealer can search for entries to a protracted place within the $60-$64 area. A decrease timeframe swing failure sample and a bullish reversal may very well be one such set off to look out for.
The concept that consumers nonetheless have some energy got here from the On-Stability Quantity (OBV). This indicator shaped increased lows since mid-June. Nonetheless, the latest wave of promoting pressured the OBV to interrupt its construction. It stays to be seen if demand arrives as soon as extra. Invalidation of the concept of a bounce from the mid-range worth could be a day by day session shut beneath $59.4. In that state of affairs, the bias would have flipped to a bearish one.
The Relative Energy Index (RSI) additionally dropped sharply beneath impartial 50 to point bears had been dominant. The VPVR device confirmed the Level of Management at $54, marking it as a assist stage ought to LTC fall beneath $59.4. The Worth Space Excessive at $70 can function resistance within the occasion of a bounce. The $61.7 space was a high-volume node, making it a assist zone alongside the mid-range and the bullish order block.
The funding charge was adverse in response to the steep drop, and MVRV additionally took successful
Supply: Santiment
The Market Worth to Realized Worth (MVRV) ratio (30-day) had been effectively above the zero mark since 17 November, following Litecoin’s surge from $60 to $70.44. Within the weeks that adopted, the MVRV slowly tailed off, and the latest losses pressured the metric into adverse territory. This confirmed short-term holders at a loss as soon as extra. The funding charge was additionally deeply adverse, exhibiting sentiment was bearish towards the asset within the futures markets.
In the meantime, there was no giant spike on the age consumed metric. The age consumed was better through the December 10 retest of $73.4 as assist. The inference from this metric alone was {that a} restoration may very well be doable, as promoting was not as intense because it appeared on the value charts.
