Litecoin faces new resistance; who’s in control?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LTC bulls attempted to break $93 resistance level.
- Buyers dominated long/short ratio with 52.27% margin.
The short-term rally in the crypto market in the past 48 hours saw Litecoin [LTC] post gains of 7.9%. This spurred a firm rebound off the $85 support level with LTC trading at $90, as of press time.
Realistic or not, here’s LTC’s market cap in BTC’s terms
With Bitcoin [BTC] posting 3.1% gains within the same period and recapturing the $27k price zone, LTC could reach the April high of $102 with sustained bullish momentum.
Bulls rally on lower timeframe
Litecoin’s near-term price action on the four-hour timeframe strongly favored the bullish momentum. Between 8 May and 14 May, bulls found key support at the $80 support level and rallied strongly to touch the $93 resistance level. This rally broke the bearish lower high to signal a change in market sentiment.
Selling pressure at the $93 resistance level forced LTC to retest the $85 support level with bulls showing their strength again with a swift price rally to $90. The next challenge lies for LTC at $93 with bulls aiming to flip the resistance to support.
The on-chart indicators showed that significant demand for Litecoin could see bulls smash the $93 resistance level. The RSI jumped above the neutral 50 and stood at 61, as of press time. The OBV recorded a decent uptick in volume to highlight increased demand. The CMF also rose sharply and stood at +0.15 to hint at significant capital inflows for Litecoin.
An encouraging fact for bulls is that the $93 resistance level has been tested four times in the past ten days. A strong candle close above the level along with significant volume could see bulls push on for more gains. On the flip side, a downturn again by BTC will offer bears the opportunity to halt the bullish momentum.
Read Litecoin’s [LTC] Price Prediction 2023-24
Spike in active addresses hinted at rising demand
Data from Santiment revealed that LTC witnessed significant spikes in active addresses over the past seven days. This pointed toward the possibility of increased demand.
The demand for LTC was echoed on the long/short ratio. Buyers dominated in the short term with a 52.27% margin on the four-hour timeframe. Traders should continue to track BTC’s price action and developments around LTC that could impact the coin’s price.