Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
While the $65 recovery generated strong demand, it did not hold up to a breakout above $100. A retest of the $105 region could provide opportunities for short sellers due to higher time-frame resistance.
Litecoin has seen great volatility in 2023, but while many altcoins reversed their previous downtrend, LTC remained within a range. At the time of writing, it was trading just below the $100 resistance zone.
How much are 1, 10 or 100 LTC worth today?
The recovery from the mid-March drop to $65 was swift, but the bulls have been rather timid in recent weeks. Bitcoin has been strongly bullish, but if that were to change, Litecoin could be set to hit the lows again.
Dormant LTC bulls were unable to push prices above $95
The red box in the $105 region marked a bearish order block on the daily time frame. It was established in May 2022 and Litecoin dropped to $42 in June. In 2023, price action was more hopeful, but the bulls were not strong enough to secure a break above USD 100.
The range (yellow) stretched from $66 to $102.5, and the OBV also stayed within the range. It didn’t make for a series of higher highs that spanned three months, which would have supported the idea of accumulation. Rather, it fell back to 2023 lows during the mid-March sell-off.
Realistic or not, here is the market cap of LTC in terms of BTC
At the time of writing, the OBV was just below a recent local high and the RSI also saw a jump from the neutral 50. This showed neutral momentum and some buying pressure over the past month.
Therefore, aggressive traders may try to take short positions in the event of an LTC rejection from the $100-$105 area. On the other hand, a strong move above the $108-$111 region will indicate bullish momentum.
The futures market showed short-term bullishness
Coinalyze’s 1-hour chart was clear on the lower timeframes. The past week’s volatility caused some liquidations from both short and long position holders, but nothing significant.
The financing rate remained positive. In combination with the lower time structure, the conclusion was an optimistic sentiment.
More importantly, the OI moved with the price action and advanced during LTC’s short-term rallies. This showed that speculators were bullishly biased and willing to bet on price rises rather than short on price falls.
This post Litecoin [LTC] struggling to break above $100, here’s why
was published first on https://ambcrypto.com/litecoin-ltc-struggles-to-break-above-100-heres-why/