Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Litecoin fills an inefficiency on the charts and a pullback to an area of interest was expected Momentum remained in favor of the bulls and demand could fuel further price gains
Litecoin [LTC] performed impressively on the price charts in recent weeks. The breakout past range highs in late November was significant as this range has been in play since May.
With Litecoin halving in August 2023 and hash rates rising in recent months, it was possible that LTC could rise well above $100 in the coming months.
Read Litecoins [LTC] Price Forecast 2023-24
The scenario highlighted in this article is in case of continued bullish momentum. A drop below the $85 and $80.6 levels could signal a deeper retracement to $76.3. However, bear market rallies can be extremely aggressive and traders should remain cautious.
An aggressive upward move could follow in the coming days and traders should look for a dip to $80 to buy
Litecoin had a strong bullish outlook. It broke out past the range highs (yellow) at $73.3 on Nov. 23. Selling pressure in December pushed LTC back to the bullish order block of $60, which was also close to the mid-value of $60.3.
Despite the $80 pullback in December, the higher time frame market structure remained bullish as the $59.25 was unbroken. This saw a follow-up from the bulls over the past two weeks as they recaptured the range highs and moved higher still.
Is your wallet green? Check the Litecoin [LTC] Profit calculator
On the daily time frame, a fair value gap of $84.75-$91.75 was seen, outlined in white. This inefficiency has been filled, but a reversal may not occur. Instead, Litecoin would likely move higher towards the bearish order block in the red-highlighted area of $99-$106.
The RSI was in overbought territory, but momentum remained strongly bullish as the daily and 12-hour timeframes have yet to show any divergence. Similarly, the OBV has also moved rapidly northward over the past two weeks, reinforcing the idea of strong buying pressure.
So dips are for sale. A pullback to the $80 (cyan) area may be considered. It has been a zone of consolidation on lower time frames and could see a quick bullish reaction. Invalidating this idea is a daily session close to USD 79.4, while take profit would be near the bearish order block above the USD 100 psychological level.
The rising MVRV ratio may change buyers’ minds
Santiment data showed that the funding rate was positive. This emphasized the optimistic sentiment in the market, but the MVRV ratio (30 days) was also positive. This meant that just like during the late November rally, holders could see gains over the next two weeks.
This could create bearish pressure and force a drop in Litecoin prices. If the dormant circulation statistic also shows a strong increase, it could underscore the notion of profit-taking by holders in recent months.
This post LTC traders can look out for these crucial levels to determine a move past $100
was published first on https://ambcrypto.com/ltc-traders-can-watch-out-for-these-crucial-levels-to-determine-a-move-past-100/