Litecoin rebound falters at key level, will sellers take over?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LTC’s bullish rebound failed to clear the bearish obstacle at $65.
- Market speculators looked to profit with increased short positions in the interim.
Litecoin [LTC] bulls and bears continued to battle for supremacy on the price charts, with sellers holding the advantage at press time. Over the past week, bulls rallied strongly from the $57 support level. Yet, the selling pressure at the $65 price zone curtailed the buying momentum.
How much are 1,10,100 LTCs worth today?
With Bitcoin [BTC] experiencing a correction after hitting $27.4k within the same period, LTC sellers could see more opportunities emerge in the short term.
Bulls caught out by bearish trap at critical price level
Litecoin’s volatile movement in August led to bears finding the top at the $72 resistance zone, while bulls found the bottom at the $57 support zone. The $65 price zone acted as a dynamic support or resistance, based on buying or selling momentum.
Over the past day, bulls closed a daily trading session above the $65 price zone. This inferred that buyers were willing to use the level as a support zone to push for further gains.
However, sellers quickly extinguished the buying momentum with a 7% price drop. As of press time, LTC traded at $63, as sellers quickly re-established a resistance level at $65.
This bearish move drove the Relative Strength Index (RSI) under the neutral 50 while the Chaikin Money Flow (CMF) also moved into negative territory. Both were signs of increased selling pressure and exiting capital.
Sellers dominated the short-term positions for speculators
Read Litecoin’s [LTC] Price Prediction 2023-24
In the futures market, market participants were rapidly increasing their short positions. As of the time of writing, short positions amounted to $30.54 million, representing a 54.62% share of the open contracts.
With the CMF revealing moderate capital outflows, another return to the $57 to $60 support zone could be in the making for LTC.