Litecoin, (LTC) Since late November, there have been several price rejections at 80.24%. The $76.72 level had the highest traded volumes as indicated by Volume Profile Visible Range’s (VPVR) indicator.
LTC had fallen below the price rejection threshold by the time this article was published, but it found new steady support at $63.48.
LTC traded below $66.40, after BTC fell below $16.82k. The asset was trading at $66.05 at press time. This is due to strong selling pressure and a slight uptrend.
If the selling pressure increases, LTC could retest or break below the current support level at $63.48.
Technical indicators suggested a mild uptrend, given sellers’ leverage in the market. Relative Strength Index, (RSI), showed a gradual inclination toward 50. It showed the buying pressure and accumulation had increased, but selling pressure couldn’t be ignored.
The On Balance Volume (OBV), which has recently fallen to higher levels, indicates that the trading volume was slightly up in the last few days, which bolstered buying pressure and increased the uptrend momentum. OBV still needs to be at 20m in order to give bulls leverage.
In addition, the Directional Movement Index, (DMI), showed sellers having the upper hand, despite a slow decline in recent months.
LTC could fall below $64.67, and then slide into the buy area (green zone). LTC could find support at $61.15, especially if BTC is bearish. It can serve as a short-selling target but doesn’t offer an excellent risk-to-reward ratio (RR).
Bulls will have little leverage if they move above the 50-EMA (Exponential Moving Average), level of $68.35, which would invalidate the bearish forecast. Investors who purchased LTC at discounted prices could wait for a selloff at $76.72 in order to lock in gains.
LTC investors, both short-term and longer-term, suffered losses exceeding 5%
Additionally, active addresses showed an increase in the past 24 hours, indicating that LTC accounts traded LTC increased with increasing prices.
If the trend continues, the selling pressure may be reduced, which could allow bulls to continue the uptrend momentum. A bullish BTC will make this an uptrend that will invalidate the previous bearish bias.