Litecoin [LTC]: Bears gained ground – Will bulls defend the $80 support?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- At the time of writing, LTC was bearish on the four-hour chart
- Open interest rates fluctuated in the past few days and dipped at press time
The crypto market continues to reel from market uncertainty. Over the weekend (6 – 7 May), Litecoin [LTC] saw elevated short-term selling pressure. It dropped from $89.7 and was close to falling below the $80 psychological level at press time.
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Meanwhile, Bitcoin [BTC] hovered in the $27k zone after losing the $28k price range. The drop could expose LTC to more price slumps.
Will the support check the price dump?
On the four-hour chart, the Relative Strength Index (RSI) retreated to the oversold zone after attempting to rise on Saturday (6 May). It indicated a slight improvement in demand but with an increase in selling pressure.
Moreover, the Chaikin Money Flow (CMF) hovered below the zero mark – indicating LTC’s limited capital inflows – a bearish outlook in the derivatives market.
As such, near-term bears could attempt to crack the support zone at $73.99 – $80.3. Below the support, LTC could see more aggressive selling and sink toward March lows of $65.
However, a rebound could be likely if the bulls defend the $80 support. Such an upswing, especially if BTC reclaims upper price ranges, could force LTC to rally to $103 (supply zone, red).
But the Fair Value Gap (FVG) also exists at $95.7 – $99.7 (white) and could offer some resistance.
Open interest rates dipped slightly
How much are 1,10,100 LTCs worth today?
According to Coinglass, LTC’s open interest rates wavered within $340 – $350 million in the past few days. At press time, the OI dropped to $337 million – a bearish sentiment in the futures market.
Similarly, the exchange LTC long/short ratio revealed short positions dominated 50.55% in the past four hours. Although the spread was little, short-sellers still had the upper hand at press time and could attempt to crack the $80 support.