Litecoin consolidates losses above $80
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LTC’s price performance was muted before and after the halving.
- Spot trading volume ratio painted neutral sentiment at the time of writing.
After bleeding out in early August, Litcoin [LTC] was positioned to consolidate losses above $80 in the short term. Litecoin’s halving event was successfully executed on 2 August, reducing the block reward from 12.5 to 6.25 LTC. However, the pre and post-halving period was marked by a massive market bleed-out as sellers overwhelmed the market.
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On 1 August, the eve of the halving event, LTC posted 1.8% gains. But it plunged on the D-date, shedding 6.81% on 2 August. The plunge was further aggravated after Bitcoin [BTC] lost hold of $30k on the same day (2 August).
LTC dipped further the following day (3 August), shedding an extra 5.7%, and subsequently eased below $85.
Can LTC clear the $85 resistance?
LTC’s price action has remained below $85 since the extended plunged on 3 August. In the past few days, the altcoin formed a narrow price range between $80 – $85 as it consolidated losses.
A set of Fibonacci retracement levels (yellow) was plotted between the July high ($104.4) and the recent August low ($73). Based on the tool, LTC’s recent narrow price consolidation has been constricted between the 0% ($73) and 23.6% Fib ($85) pocket levels.
The RSI was positive but moved sideways, slightly above the neutral level – indicating weak buying pressure. On the other hand, the CMF registered an uptick but deep below the zero mark – illustrating capital inflows were dismal.
The weak metrics point to a likely $85 resistance remaining problematic for LTC in the next few hours/days. Unless BTC exceeds $29.5k, short-term range-bound between 0%-23.6% Fib pocket could be on the cards.
So, $89 and $76 were key levels to watch for any breakout above or below the narrow price range.
Neutral sentiment prevailed
At the time of writing, the live trading volume ratio from CryptoMeter, set buy vs sell volume sat roughly at 50% to 50%, a neutral sentiment that implies the price could take any direction.
How much are 1,10,100 LTCs worth today?
Although LTC’s derivative trading volume tanked by about 20% at the time of writing, the Open Interest rates edged slightly at +1.30%, as per Coinglass.
A look at the liquidation data showed more longs were wrecked. But the spread between short and long liquidations across all timeframes was so little. So, it reinforces a short-term neutral inclination and range extension.