Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- 6.1% gains propelled LTC to the USD 80 psychological level.
- Rising average coin age indicated network-wide accumulation.
Litecoin [LTC] jumped 6.1% in the last 24 hours to continue its rally from the $72 support level. Selling pressure on LTC turned the market structure into bearish after the breakout of the bullish trendline and critical $80 support level. However, bulls stalled bearish momentum at the $72 support level and recovered to trade at $77.5 as of writing.
Realistic or not, here is the market cap of LTC in BTC terms
With Bitcoin [BTC] posting gains of 4% over the same period to push it to $26.5k allows LTC to post more gains due to its correlation with BTC.
The rally is over…
Source: LTC/USDT on trade view
Litecoin’s rejection of the $97 resistance level on June 3 ushered in a massive selloff. Due to this, LTC broke the support levels at $85 and $80 respectively.
Another downward move on June 14 caused Litecoin to hit its March low of $72. In this case, bulls quickly defended the support level and rallied with five consecutive bullish candles in the 12-hour time frame.
This revealed the strong buying pressure at the $72 support level and the willingness of bulls to regain some lost ground as the price moved towards the $80 psychological level.
Buyers may be encouraged by the bullish crossover on the Moving Average Convergence Divergence (MACD) indicator. This indicated growing bullish momentum in the near term. The Relative Strength Indicator (RSI) also climbed sharply out of the oversold zone, standing at 41 at the time of writing.
For a sustained bullish reversal, buyers will need to overcome the hurdles at the $80 resistance level and break above the trendline. These will be two critical zones where bears will interrupt the bullish rally and force prices back down.
How much are 1,10,100 LTCs worth today?
Changing tides in the futures market as the average coin age rises
Source: Sentiment
Dates from Sanitation revealed that the average coin age of 90 days has been on a steady upward trend since June 10. It pointed to increased accumulation of LTC, which could translate into more buying pressure.
The four-hour liquidation data of Mint glass showed that shorts took a beating on several currencies in the futures market and LTC shorts were not left out. Approximately $565.82k in shorts were lost, accounting for 98% of liquidations. This was a signal that buyers were getting the upper hand as LTC tries to reverse its recent losses.
Source: Coinglass