Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author

Litecoin fell into a zone of strong mid-market support, a bullish order block and a high volume node. This could still fail if Bitcoin stumbles below $16.2k in the coming days

Litecoin [LTC] presented a somewhat risky buying opportunity on the price charts. Risk-averse traders should wait for the December 19 trade to determine a direction for Litecoin in the coming week. However, the trend has been bearish in recent days.

Read Litecoins [LTC] Price forecast for 2023-24

In late November, Litecoin retested previous range highs as support and bulls attempted to push prices back above $80.65. Their efforts met increased sales pressure. The weakness of Bitcoin [BTC] saw Litecoin lose $73.4 as support.

Litecoin Falls Back in Range: Can the Bulls Defend $60?

Source: LTC/USDT on TradingView

Since June, Litecoin has been trading within a range of USD 73.4 to USD 50.2. The midpoint of this range was at $60.5. This level also has a confluence with a bullish order block on the daily time frame that formed LTC on Nov. 21.

Therefore, a bullish trader can look for entries into a long position in the $60-$64 region. A shorter period swing failure pattern and a bullish reversal could be one such trigger to look out for.

The idea that buyers still have some power came from the On-Balance Volume (OBV). This indicator has been hitting higher lows since mid-June. However, the recent wave of sales forced the OBV to break its structure. It remains to be seen whether demand will return. Invalidating the idea of ​​a bounce from mid-value would be a daily session close to $59.4. In that scenario, the bias would have turned to bearish.

The Relative Strength Index (RSI) also fell sharply below the neutral 50 to indicate that the bears were dominant. The VPVR tool showed the Point of Control at $54, marking it as a support level should LTC drop below $59.4. The Value Area High at $70 can act as resistance in case of a bounce. The $61.7 area was a high volume node making it a support zone next to the mid range and bullish order block.

The funding rate was negative in response to the sharp drop and MVRV also took a hit

Source: Sentiment

The Market Value to Realized Value (MVRV) ratio (30 days) has been well above the zero mark since November 17, after Litecoin surged from $60 to $70.44. In the weeks that followed, the MVRV slowly declined and the recent losses forced the metric into negative territory. This again showed that short term holders were losing money. The funding rate was also deeply negative, showing that sentiment was bearish towards the asset in the futures markets.

Meanwhile, there was no major spike in the age statistic used. The consumed age was greater during the December 10 retest of $73.4 as support. The conclusion from this measure alone was that recovery could be possible as the selling was not as intense as the price charts appeared.



This post As Litecoin fails to hold onto November’s gains, here’s what traders can expect

was published first on https://ambcrypto.com/as-litecoin-fails-to-hold-onto-november-gains-here-is-what-traders-can-expect/

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