Which way will Litecoin swing from the critical price zone?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Litecoin attempted a range breakout but bullish efforts were futile as sellers came back into the market.
- Market speculators were hesitant to commit to a bullish or bearish trend.
Litecoin’s [LTC] oscillating price movement continued into October with bears swiftly curtailing the bullish attempt to break out of the price range.
How much are 1,10,100 LTCs worth today?
Previously, a 6.1% bullish rally on 1 October took LTC from $64 to $68. However, sellers responded with a similar price drop to take the altcoin back to the $64 price zone.
With Litecoin trading in a key price zone, a volatile price swing could be in the works.
Bulls and bears tussled for control at the critical price zone.
On the 12H chart, the Visible Range Volume Profile showed that the Value Area High (VAH) and Value Area Low (VAL) sat at $93 and $57, respectively. The Point of Control (POC) at $64 showed why LTC had ranged at this price zone for over two months.
The POC (red) marked the price zone where the most volume of trading occurred in the visible range, which extended back to early June. This signaled that the price action in the POC price zone could heavily influence LTC’s next move.
A look at the on-chart indicators revealed an even-handed distribution in the market. The Chaikin Money Flow (CMF) stayed just above the zero mark with a reading of +0.05. This highlighted decent capital inflows.
On the other hand, the Relative Strength Index (RSI) hovered at the neutral 50 mark, showing equal buying and selling pressure.
Based on the neutral sentiment, two scenarios are likely in the long term. Scenario one would see sellers take LTC toward $60 while scenario two would see buyers rally to $70.
Read Litecoin’s [LTC] Price Prediction 2023-24
Uncertainty remained prevalent in derivatives market
Data from Coinalyze revealed a hesitancy by market speculators to commit to either a bullish or bearish swing. While the funding rates were largely positive signaling a willingness by buyers to rally, the spot CVD trended lower.
This showed a huge lack of demand for Litecoin which could have adverse effects on buyers with sellers more likely to benefit.