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Litecoin [LTC] falls below $90: Bulls can seek re-entry at these levels

2min Read

Litecoin [LTC] attempts recovery after a massive bull trap on 26 April. Market fluctuations may still affect the asset’s short-term prospects.

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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


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.
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