Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation
Litecoin has had the same variety of lively customers every day over the previous three months. And, this quantity has stayed within the 300k to 400k space. Transaction quantity every day has additionally various from $1 to $7 billion over the previous three months. Whereas these info present that the community stays comparatively strong and popularly used, this was merely not mirrored within the worth charts. The worth has been on a extreme downtrend since November.
LTC- 1D
Supply: LTC/USDT on TradingView
The Quantity Profile Mounted Vary from 20 July to the current day confirmed that the Level of Management lay at $181, and had slipped beneath the Worth Space Lows at $131. On the time of writing, the worth was buying and selling on the important quantity node at $110.
The worth was rejected on the $143 resistance stage in early February and was additionally buying and selling beneath the $120 stage at press time. The $110 help space has been examined for the third time since July final 12 months. Such exams of help adopted by weaker bounces are indicative of weakening help areas.
To the south, $95 and $80 might see some demand for Litecoin, however its pattern remained strongly bearish.
Rationale
Supply: LTC/USDT on TradingView
The indications additionally confirmed that LTC had a bearish bias for the long run. The RSI has been beneath impartial 50 for essentially the most half since mid-November. The reduction rally of early February was unable to push previous 60 as nicely.
On the time of writing, the RSI was at 42 and could possibly be headed decrease. The OBV has additionally been on a gradual downtrend, whereas the CMF was on the verge of crossing over beneath -0.05. This confirmed that promoting stress has been sturdy up to now few months.
Conclusion
The promoting stress behind LTC has been regular and the market construction was bearish. The worth rested at a long-term help space which has been weakened on the current retests. The disappearance of demand on this space might quickly materialize and push Litecoin beneath the $100 mark within the weeks to return.
