Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LTC could target a critical overhead resistance.
- LTC recorded a drop in active addresses, but open interest increased gradually.
Litecoin [LTC] has been rallying since late December 2022, with occasional corrections. It gained over 40% after rising from a low of $63 to a high of $91 in the past few weeks.
However, LTC traded sideways briefly before dropping to a new support at $82.44. At press time, bulls launched a price recovery from the above support and aimed at the recent high price levels.
Read Litecoin’s [LTC] Price Prediction 2023-24
The overhead resistance at $91: Can bulls reach it?
The Relative Strength Index (RSI) faced rejection at the mid-point and moved sideways. It shows buying pressure gained traction at midpoint, but stagnated afterwards.
As such, bulls had the upper hand in the current market structure. They could push LTC towards the overhead resistance at $91.34, especially if Bitcoin [BTC] maintained the $21K zone. However, bulls must overcome the $85.78 hurdle.
Alternatively, bears could block bulls’ efforts and force LTC to retest or break below the immediate support level at $82.44. The drop could be held by the $80.09 level (red line), but would invalidate the bullish forecast above.
LTC’s active addresses dipped alongside short-term holders’ gains
According to Santiment, LTC’s active addresses dropped on 18 January, followed by small spikes afterwards. It showed that trading volume dropped but fluctuated later. This fluctuation could thus undermine a strong uptrend momentum.
Short-term holders also recorded a profit drop as the 30-day MVRV (market value to realized value) ratio fell close to the neutral line. In fact, short-term holders made zero profits on 18 January after a sharp price decline. Regardless, at press time, there were a small percentage of gains were recorded.
How much is 1,10,100 LTCs worth today?
According to Coinglass, LTC could benefit from a slight uptrend momentum. The coin’s Open Interest (OI) peaked on 12 January before taking a nosedive, showing that more money flowed out of LTC’s futures market, undermining bullish momentum.
However, the OI rose gradually from January 19. LTC could thus gain a strong uptrend momentum if the trend continued and targeted the overhead resistance at $91. But a bearish BTC could complicate matters for LTC bulls.