Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The market structure was bullish on the daily time frame.
- The defense of the $90 area caused the CVD to stabilize.
Litecoin [LTC] has moved higher on the price charts while the rest of the crypto market has been under strong selling pressure. Over the past five days, LTC bulls were able to drive prices above the $90 supply zone and flip into a demand area.
Realistic or not, here is the market cap of LTC in terms of BTC
Litecoin’s network activity increased and its correlation with Bitcoin increased [BTC] fell, showing that the sentiment was solidly bullish. But Litecoin faces significant obstacles in the north. And despite the drop in correlation, a dip in BTC prices could negatively impact LTC as well.
Litecoin is trading within a range formation, but bulls have some room
Source: LTC/USDT on TradingView
Litecoin price action has shown bullish momentum over the past ten days following a major wave of selling pressure in early May. The $90 area was retested as resistance on May 3, but within three weeks the bulls turned it around to support.
This was accompanied by a hugely positive reading on the Chaikin Money Flow, which showed significant capital inflows into the LTC markets. The RSI also climbed past the neutral 50 to signal a shift in trend.
The break from the recent lower high at $91.64 meant that the market structure was also bullish. In the north, a daily bearish order block from May 2022 sat at $104. $105.71 is the highest LTC to rise in the past year, and bulls are likely to try to change that.
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Open Interest’s slow rise showed that speculators on the sidelines were willing to bid again
Source: Coin analysis
The defense of the $90 support zone caused the spot CVD to flatten on May 20, after falling in the previous two days. This showed that buyers were bidding on the asset and could drive another upward move.
The Open Interest had also been flat for the past two days, but continued to move up the charts. It was not as fast as the previous week, but the trend continued upwards. Along with the rise in LTC prices, it can be concluded that short-term speculators were also optimistic. While prospects for a move to $100 looked good, a rally above yearly highs was questionable.