Litecoin [LTC] bulls have proven indicators of weak spot close to the $60 value vary the place it has been dealing with resistance throughout its restoration section.
Nonetheless, the cryptocurrency has managed to keep away from a large retracement by sustaining its momentum above its 50-day shifting common.
Litecoin has managed to remain above the 50-day shifting common for nearly 10 days. At press time, the token stood at $59.85 up by 1.39% from the day’s opening value.
The Relative Energy Index (RSI) too moved in direction of the overbought area whereas the Cash Circulate Index (MFI) simply hovered over the 50-line. The above-50 RSI did present a wholesome sign for re-accumulation of the token.
Supply: TradingView
Why Litecoin’s upside was nerfed?
Litecoin’s robust bullish assault was curtailed inside the $60 value degree at across the similar time that its 60-day dormant circulation metric registered a pointy uptick.
The metric jumped from 6761 LTC on 18 July to 1.67 million as of 19 July.
This implies roughly $96 million value of promoting strain entered the market.
Supply: Santiment
Moreover, the variety of lively addresses soared by 71,000 throughout the identical interval.
In distinction, the interval from 25 July to 26 July was characterised by a small enhance in dormant circulation from 7,520 LTC to 16,239.
In the meantime, the variety of lively addresses dropped by simply over 60,000.
Nonetheless, this time, the quantity moved was little as in comparison with final week. However, it was sufficient to supply an uptick.
The bizarre remark would possibly simply be the results of heavy revenue taking after the weekly rally.
However, the result was that of a restricted upside for the reason that promoting strain summoned the bears. And, the ensuing draw back has been reasonably restricted.
This means that many buyers are opting to carry on to their cash, maybe for long-term funding.
Traders is perhaps extra incentivized to HODL their LTC reasonably than promote. Particularly, now that it has secured privateness coin standing.
Litecoin’s short-term earnings is perhaps thrilling for merchants, however the cryptocurrency remains to be undervalued from a long-term and all-time excessive (ATH) perspective.
