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The Litecoin buyers have no reason to panic just yet as the price action continues to be bullish. The lower trend in the time frame and the drop below the $100 psychological level could also be the start of a reversal
Litecoin [LTC] spent much of April and May recovering the gains it made in March. June didn’t start well for the bulls as LTC fell to $71, but the bulls have since mounted an incredible rally.
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In the 1 day time frame, the Litecoin market structure remained bullish. But the dip below $100 raised concerns that sellers were beginning to seize the initiative. The $90-$92 region can be vital in determining whether the bulls or the bears win this battle.
Litecoin is under a bullish breaker block, but buyers can still hope
In the 1 day time frame, Litecoin had strong bullish momentum as it raced past $100 on June 30. During last week’s pullback, this momentum has been dampened. To reflect this, the RSI dropped to the neutral 50 but continued to show upward momentum.
The OBV was in an upward trend and the CMF also showed capital flows to the market. Together, the volume indicators showed that there was still demand behind Litecoin. Still, the bearish order block it formed on April 18 was not defended as a support zone in a retest.
The Fibonacci retracement levels (yellow) were plotted based on the swing move from $70.75 to $115. The 50% and 61.8% retracement levels at $92.88 and $87.65 have not yet been tested as support. It remained likely that these levels could trigger a bullish response from Litecoin.
The decline in MVRV showed profit taking, but will Open Interest start to recover?
Coinglass data showed that the recent LTC rally was accompanied by a huge spike in Open Interest. As prices started to fall, so did the OI. While this highlighted the discouraged bulls over the past week, it was not a sign of a trend reversal.
Santiment data underlined the drop in the 90-day MVRV ratio, meaning some holders have been selling the asset to make a profit. Still, the average coin age has started to rise again, indicating the accumulation of Litecoin.
How much are 1, 10 or 100 LTC worth today?
Along with the price action in the 1 day time frame, the bias remained bullish. The bears would be at the helm of a drop in Litecoin prices below $87.65.
It was possible that the price action would be choppy over the next few days but above $90. This would indicate a consolidation phase before the next big step.
This post Should Litecoin bulls be concerned if the price drops below $100
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