Disclaimer: The knowledge introduced 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 robust help 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] introduced a barely dangerous shopping for alternative on the worth charts. Threat-averse merchants ought to anticipate 19 December’s buying and selling to set a course for Litecoin within the coming week. Nevertheless, the development has been bearish in current days.
Learn Litecoin’s [LTC] Value Prediction for 2023-24
Late in November, Litecoin retested the previous vary highs as help and bulls sought to push the costs again above $80.65. Their efforts have been met with better promoting stress. The weak spot of Bitcoin [BTC] noticed Litecoin lose $73.4 as help.
Litecoin falls again into the vary: can the bulls defend $60?
Supply: LTC/USDT on TradingView
Since June, Litecoin has traded inside a spread 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 every day timeframe that LTC fashioned on 21 November.
Subsequently, a bullish dealer can search for entries to an extended place within the $60-$64 area. A decrease timeframe swing failure sample and a bullish reversal could possibly be one such set off to look out for.
The concept that patrons nonetheless have some power got here from the On-Stability Quantity (OBV). This indicator fashioned greater lows since mid-June. Nevertheless, the current wave of promoting compelled the OBV to interrupt its construction. It stays to be seen if demand arrives as soon as extra. Invalidation of the thought of a bounce from the mid-range worth could be a every day session shut beneath $59.4. In that situation, the bias would have flipped to a bearish one.
The Relative Energy Index (RSI) additionally dropped sharply beneath impartial 50 to point bears have been dominant. The VPVR device confirmed the Level of Management at $54, marking it as a help 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 help zone alongside the mid-range and the bullish order block.
The funding fee was unfavourable in response to the steep drop, and MVRV additionally took a success
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 current losses compelled the metric into unfavourable territory. This confirmed short-term holders at a loss as soon as extra. The funding fee was additionally deeply unfavourable, displaying sentiment was bearish towards the asset within the futures markets.
In the meantime, there was no massive spike on the age consumed metric. The age consumed was better through the December 10 retest of $73.4 as help. The inference from this metric alone was {that a} restoration could possibly be attainable, as promoting was not as intense because it appeared on the worth charts.