Litecoin [LTC] retests recent price floor; here’s where you can enter
- Bearish order block at the $91 level reversed bullish rally.
- LTC shorts retained a 54.1% advantage in the longs/shorts ratio.
Litecoin’s massive volatility has seen it record large price swings in 2023. LTC began the year on a bull run, rising from $65 to a year-high of $102 in just two months. A large dip followed immediately with LTC declining to $65 again in March.
The bullish order block at the $65 mark propelled it to the year-high again. However, the general market correction has seen LTC settle at $86.47, as of press time.
With BTC dipping by 4.7% within the last 24 hours, more price fluctuations might lie ahead for LTC.
Realistic or not, here’s LTC’s market cap in BTC terms
Litecoin bulls meet stiff resistance at $91
LTC’s second dip saw the coin fall from $102 to $84.85 between 18 April to 22 April. This invalidated the bullish market structure, as the dip broke the coin’s higher low trajectory.
Bulls were able to steam the bearish tide briefly, finding support at $85 to push the price back up to $91. However, the bearish order block and resistance at the $91 level thwarted the bullish rally.
A daily candle close below $85 could see further selling pressure, pushing LTC toward the $80 mark. A look at the indicators showed a slight edge for the bears.
The RSI indicator stood at the 34 mark, approaching the oversold zone. The AO also posted five red bars in a row under the zero mark. This suggested that bears held a slight advantage.
An important area for bulls will be the bullish order block just above the $80 support level. If bears break past $85, it could be an area where bulls look to reverse the bearish trend.
Read Litecoin [LTC] Price Prediction 2023-24
Market sentiment remained neutral with mixed signals
Data from Coinalyze showed that the funding rate for LTC has been positive throughout April. However, the spot CVD posted a steady decline over the same period.
LTC shorts retained a 54.1% advantage over longs in the long/short ratio, at the time of writing. This was also reflected in the liquidation data. $1.86M worth of long positions were liquidated in the past four days with most of the liquidation happening around the $90 mark.
Due to LTC’s tendency for huge volatility, traders should exercise caution and monitor new developments around LTC that could impact the coin’s price.