Litecoin’s heading towards a range low – Can sellers break out?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Litecoin extended its range formation, with the price heading towards a range low
- Market speculators remained uncertain with little movement in Open Interest
Litecoin’s [LTC] bullish rebound from the $57-support level faltered around the $68-price zone. This extended LTC’s range-bound movement between $57 and $70. The 5.4% drop over the last 24 hours saw Litecoin trade at $60, as of press time.
Read Litecoin’s [LTC] Price Prediction 2023-24
With Bitcoin [BTC] dropping from $27.2k to $26.7k within the same period, a retest of the $57-support level could be a possibility in the near term.
Sellers kept bulls suppressed
The 12H timeframe revealed the extended Litecoin price range which began in mid-August. Bears and bulls alike have been unsuccessful in trying to break out of the range.
However, LTC’s recent price action hinted at a retest of the $57-support level. This could lead to either a bearish break of the level or a sustained bullish rally. Either outcome would lead to a breakout from the range.
A look at the on-chart indicators suggested momentum could be with the sellers in the long term. The RSI (Relative Strength Index) remained under neutral-50 and stood at the edge of the oversold zone.
The bearish advantage could’ve also been helped by the negative capital inflows over the last few days, as demonstrated by the CMF’s (Chaikin Money Flow) reading of -0.13.
Muted reaction in derivatives market
Data from Coinalyze revealed a lack of commitment by market speculators. The OI (Open Interest) remained around the $205 million-zone, with no significant movement in open contract positions.
How much are 1,10,100 LTCs worth today?
Similarly, the spot CVD continued to trend lower. This underlined a lack of demand for Litecoin which could further aid sellers in the long term.