Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

Litecoin stalls at $95 ahead of FOMC Minutes

2min Read

LTC faces elevated short-term bearish pressure ahead of FOMC minutes and a considerable chunk of BTC options expiring on 26 May.

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.

  • LTC rallied over 20% between 12 May- 17 May.
  • The rally cooled off at $95 ahead of FOMC Minutes on 24 May/BTC fluctuations.

Litecoin’s [LTC] strong rally last week eased ahead of FOMC minutes and persistent Bitcoin [ BTC] fluctuations. The asset posted over 20% gains, rising from $77.7 to $95.1, and its correlation to BTC dropped. 


Is your portfolio green? Check out the LTC Profit Calculator 


Despite signs of declining correlation, LTC still succumbed to BTC’s whipsawing. At press time, sellers depreciated the asset below $90 but could face some resistance.  

Apart from the FOMC minutes, a considerable number of BTC options are set to expire on 26 May, per Deribit data. As such, overall market volatility could increase this week. 

Will sellers extend for more gains?

Source: LTC/USDT on TradingView

Sellers gained entry at the $95 price level, a sticky resistance level in late March and early April. However, price action approached another key support level of $85, and bulls could have a chance if it doesn’t crack. 

Meanwhile, the Relative Strength Index (RSI) headed to the oversold zone while On Balance Volume (OBV) dropped significantly. This highlighted that selling pressure increased while demand and volume for LTC declined. 

As such, sellers could attempt to crack the $85 support, especially if BTC remains below $27k. LTC could be devalued to the bullish order block and next support zone (cyan) near $74 if the support cracks. 

Conversely, bulls could secure the $85 support and reverse recent losses. However, they will only gain the upper hand if they push LTC above $95. Crossing the $100 mark could be feasible if they successfully clear the hurdle. 

Sellers to prevail?

LTC li

Source: Coinglass


How much are 1,10,100 LTCs worth today?


Coinglass’s liquidation data showed over $1.5 million worth of long positions liquidated in the past four hours alone. Yet less than $3k short positions were wrecked. The data paints a bearish short-term outlook for LTC’s futures market. 

A similar sentiment could intensify in the spot market and push sellers to extend gains beyond the $85 support level. Traders should track BTC’s price movement and Friday’s BTC’s options expiry.  

Share

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.