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?

Source: LTC/USDT on TradingView

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

Source: CryptoMeter.io (LTC Metrics on 12 August)

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.