Connect with us
Active Currencies 14290
Market Cap $2,520,335,253,668.90
Bitcoin Share 51.70%
24h Market Cap Change $0.24

Litecoin: Can bulls use $80 support as a springboard for another rally?

2min Read

The critical $80 support level could come to the rescue of LTC bulls again.

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Bulls look to use a familiar support level to reverse July losses.
  • Mean coin age trended upwards to highlight bullish activity.

Litecoin [LTC] bounced off the $80 psychological level, as bulls looked to put a gloomy July behind them. LTC had embarked on a significant bearish slide in July that erased all of its Q2 gains.


Realistic or not, here’s LTC market cap in BTC terms


Bulls are looking to ride the market hype after Litecoin’s halving event on 2 August. Although the halving event saw a decline in its hash rate, Litecoin is banking on the growth of its mining sector to boost LTC’s price in the long term.

$80 psychological level rescues bulls again

Litecoin LTC price chart on dark background with green and red price bars

Source: LTC/USDT on Trading View

Litecoin’s price action on the 12-hour timeframe highlighted the importance of the $80 price level to bulls. Previously, it has served as a major rallying point for LTC after periods of intense selling pressure.

A look southward showed the $80 price level sparking a bullish run in early May and late June. Bulls will be hoping for a repeat of the same after a 35% price dip in July.

The on-chart indicators flashed encouraging signs. The Moving Average Convergence Divergence (MACD) posted a bullish crossover and a few green bars above the zero mark. Similarly, the Relative Strength Index (RSI) made a notable push toward the neutral 50 mark, hinting at growing buy pressure.

However, the first obstacle in the way of bulls is the $85 resistance level. A session close above this level can see buyers target $90 – $95. On the flip side, a price rejection could see LTC fall into a range formation in the mid-term.

Upward movement of mean coin age hinted at active bulls

Source: Santiment

The chances of a bullish recovery were boosted by Litecoin’s on-chain metrics. Per Santiment, the 90-day mean coin age has been the rise since late July, showing an accumulation of LTC across the network.


How much are 1, 10, or 100 LTC worth today?


Likewise, the 30d Market Value to Realized Value (MVRV) ratio’s reading of 10% revealed that monthly holders were starting to realize profits. Together, this could enhance the chances of bulls embarking on a significant price reversal.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.