Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- LTC stood in a neutral zone at the time of writing
- The futures market flashed mixed signals, but BTC could offer needed clarity
Litecoin’s [LTC] recovery attempt was sharply blocked after Bitcoin [BTC] faced price rejection at $30k on 26 April. The retracement pushed LTC below the $90 psychological level, but the ascending trendline support checked the drop.
At press time, LTC’s price action faced another rejection at $90 – making the level a key resistance level.
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If BTC reclaims the $30k price zone, LTC could clear the overhead hurdle and reclaim the $90 psychological. In addition, LTC could be tipped for likely gains if such an upswing happens.
Can the bulls reclaim the $90 psychological level?
Source: LTC/USDT on TradingView
On the four-hour chart, the On-Balance Volume (OBV) rose, indicating increased demand for LTC in the past few days. However, the Relative Strength Index (RSI) dipped but recovered and was near the neutral level at the time of writing. This showed buying pressure improved in the past few hours, but the structure meant that price action could go in either direction.
However, if BTC reclaims the $30k price zone, LTC could close above $90. A pullback retest on $90 or confirmed uptrend continuation could see LTC rally the bearish order block of $103.05. If that happens, LTC could offer a good buying opportunity above $90.30, targeting $103.05.
However, the market imbalance within the $95.79 – $99.70 range (white) could offer some resistance to the likely rally.
Conversely, a breach below the ascending trendline (yellow line) and $84 support level could expose the asset to more aggressive selling. The downswing could push LTC to $80 or the bullish order block to $77.20.
Mixed results on the futures market
Source: Coinglass
Read Litecoin [LTC] Price Prediction 2023-24
LTC flashed mixed signals on the futures market. Notably, $4 million worth of long positions were wiped out on 26 April. As such, the rally beyond $90 turned out to be a bull trap after BTC retraced sharply.
At press time, more than $255k worth of long positions were wrecked as compared to $17k worth of short positions – corroborating sellers’ leverage.
Interestingly, funding rates remained positive despite looming short-term sell pressure in the same period.
It means there was still demand for LTC, and not all near-term bulls were exiting their positions – a mild bullish sentiment that could offer buyers hope. However, investors should be cautious besides tracking BTC for better-optimized moves.
Source: Coinglass
