Litecoin’s pullback threatens recent gains – Will bulls see reprieve?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LTC saw double-digit gains between 12-15 September.
- Bulls had market leverage but could lose it if the pullback extends.
Litecoin [LTC] fronted a double-digit recovery gain of 13% between 12-13 September. But the short-term sell pressure seen over the weekend (16/17 September) could the gains.
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LTC recovered from a recent dip of $57.8 on Monday (11 September) and hit a high of $67.05 on 16 September before fronting a retracement at press time. It was down about 5% from its recent high and traded at $63.7 at the time of writing.
Will the Litecoin pullback ease?
The price reversal at press time occurred near the H12 bearish order block (OB) of $67.2 – $68.4 (red). The next immediate roadblock for sellers is the $62.55 and $60 levels.
As such, the pullback could ease at $62.55 or $60 before attempting another leg up, especially if the FOMC (Federal Open Market Committee) Meeting on 20 September takes a dovish stance.
During the possible leg-up, the key target levels for bulls will be $65 and the H12 bearish OB near $68.
Meanwhile, the RSI eased to the 50-equilibrium mark. An extended sell pressure will be confirmed If the RSI drops below the equilibrium level.
On the other hand, the CMF had breached and extended below zero, reinforcing a dip in capital inflows over the weekend.
Buyers had leverage, but…
The CVD (Cumulative Volume Delta) had a positive slope at press time, underscoring buyers’ market leverage.
How much are 1,10,100 LTCs worth today?
However, the Open Interest rates declined considerably over the weekend, demonstrating demand for LTC dipped slightly.
In addition, the Accumulative Swing Index (ASI) retreated but was still positive, indicating that the long-term trend was still an uptrend. However, a negative ASI will suggest that the pullback morphed into a downtrend.