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LTC fell below its rising channel.
LTC price consolidation may continue into the weekend, but change early next week.
Litecoin [LTC] reached a low of $61 in December 2022, but rose to $93 in January 2023, with gains of about 50%. The January rally followed Bitcoin’s [BTC] impressive performance as it jumped from $16k to $23k.
Read Litecoin [LTC] Price prediction 2023-24
At the time of publication, the value of LTC was $87.23, with base data suggesting an almost neutral structure. LTC could fluctuate within this range and consolidate into the weekend before any final price action following next week’s FOMC (Federal Open Market Committee) announcement.
LTC price consolidation could briefly extend into the $82 – $93 range
LTC’s uptrend since late December 2022 marked a rising channel (white). But the bullish momentum faced two major challenges. The first challenge came around mid-January, after a prolonged price consolidation temporarily pushed LTC out of the bullish channel. The $82.44 support level held the decline and helped LTC recover and retest the channel’s midline around the $90 level.
The second challenge followed after LTC suffered a price rejection at $92.27, leading to a correction where the asset fell below the ascending channel. LTC has fluctuated between $87.23 and $92.27 over the past seven days. The above price consolidation may continue into the weekend and change early next week depending on how BTC reacts to the FOMC release.
A likely bullish BTC could see LTC break above the USD 92.27 level and move back into the ascending channel. Such a move could push LTC into the $100 zone.
But a bearish BTC would see LTC drop below USD 87.23 and retest the USD 82.44 support, invalidating the forecast described above.
LTC’s RSI value was 53 on the 12-hour chart, with possible rejection and recovery from the mid-50 level based on historical patterns. Therefore, the consolidation of LTC could continue into the weekend.
LTC’s outstanding interest fluctuated as holders’ earnings fell
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According to Coinglass data, LTC open interest rates (OI) fell around mid-January before fluctuating thereafter. However, at the time of writing, LTC was recording a slight increase in OI, showing more money moving into the futures market – a trend that could help boost upside momentum.
On the other hand, price fluctuations depressed holders’ profits. According to Santiment, the 30-day MVRV fell from 20% to 6%; for example, short-term holders’ profits fell by more than 10%. The decline also gave investors a somewhat bearish outlook, as evidenced by the negative sentiment.
This post Litecoin [LTC] momentum is weakening, but a reversal is likely
was published first on https://ambcrypto.com/litecoin-ltc-momentum-weakens-but-is-a-reversal-likely/