Connect with us
Active Currencies 14909
Market Cap $2,244,057,631,934.40
Bitcoin Share 50.70%
24h Market Cap Change $0.69

Litecoin [LTC] hovers above key support zone – is a reversal likely?

2min Read

Buyers seek to use $80 psychological level to stem bearish slide and rally prices toward April highs.

Litecoin [LTC] hovers above key support zone – is a reversal likely?

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Bulls looked to defend $80 support level.
  • There was a slight advantage for buyers in the futures market.

Litecoin [LTC] posted gains of 1.5% over the past 24 hours to briefly halt its bearish slide. This signaled a potential bullish reversal, as this coincided with price hovering over the key support level of $80. A recent price report highlighted the $80 psychological level as a key one for bulls.

Is your portfolio green? Check LTC Profit Calculator

With Bitcoin [BTC] recording similar gains of 1.6%, more gains could be in view of LTC.

Bulls holding onto $80 psychological level

Source: LTC/USDT on Trading View

Following LTC’s price dip from the $102 price zone, it found support at the $85 support level. From 20 April to 5 May, it ranged between the $85 support level and $91 resistance level before selling pressure took price to the key $80 level.

On the daily timeframe, the $80 level remained significant for bulls with a bullish order block lying just above the support level. Bearish momentum also waned around the $80 level and bulls rallied to keep the price just above the $80 level.

On-chart indicators supported the likelihood of a bullish reversal. The Relative Strength Indicator (RSI) hovered over the neutral 50 mark after a strong push from the oversold zone. The On Balance Volume (OBV) also recorded a decent uptick and the Chaikin Money Flow (CMF) showed more funds flowing into LTC with a reading of 0.1.

As such, a rebound is likely if bulls can successfully defend the $80 level with a strong four-hour candle close above the support level. If BTC continues its short-term attempt to reclaim $29k, this could see LTC rally to $91 again.

Alternatively, bears could make another effort at cracking the $80 level. A successful attempt could see more aggressive selling towards March lows of $65.

Read Litecoin’s [LTC] Price Prediction 2023-24

Longs hold a slight advantage in futures market

Source: Coinglass

According to Coinglass, LTC’s open interest rates oscillated between the $311M – $320M range over the past 24 hours. At press time, the OI stood at $319M–expressing modest bullish sentiment around the $80 level in the futures market.

Similarly, the LTC long/short ratio revealed long positions had a slight 50.07% advantage. Although the spread was little, buyers could attempt to use this as a springboard for short-term gains.

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.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.