Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Bulls appeared to be defending the $80 support level.
- There was a slight upside for buyers in the futures market.
Litecoin [LTC] posted gains of 1.5% in the past 24 hours to halt the bearish slide for a while. This signaled a possible bullish reversal as it coincided with a price hovering above the key USD 80 support level. A recent price report highlighted the $80 psychological level as an important level for bulls.
Is your wallet green? Check the LTC Profit Calculator
With Bitcoin [BTC] with comparable gains of 1.6%, there could be more gains in view of LTC.
Bulls hold on to an $80 psychological level
Source: LTC/USDT on trade view
After the price drop of LTC from the $102 price zone, it found support at the $85 support level. From April 20 to May 5, it ranged between the $85 support level and the $91 resistance level before selling pressure pushed the price towards the main level of $80.
On the daily time frame, the $80 level remained significant for bulls with a bullish order block just above the support level. Bearish momentum also waned around the USD 80 level and bulls rallied to keep the price just above the USD 80 level.
Indicators on the chart supported the likelihood of a bullish reversal. The Relative Strength Indicator (RSI) hovered above the neutral 50 mark after a strong push from the oversold zone. The On Balance Volume (OBV) also registered a decent increase and the Chaikin Money Flow (CMF) showed more money flowing into LTC with a reading of 0.1.
As such, a rebound is likely if bulls can successfully defend the $80 level with a strong four-hour candle close to the support level. If BTC continues its short-term attempt to reclaim $29,000, it could lead to a rally of LTC to $91.
Alternatively, bears could make another attempt to crack the $80 level. A successful attempt could lead to more aggressive selling towards the March lows of $65.
Read Litecoins [LTC] Price Forecast 2023-24
Longs have a slight advantage in the futures market
Source: Coinglass
According to Mint glass, LTC open interest rates have fluctuated between $311 million and $320 million over the past 24 hours. At the time of writing, the OI stood at $319 million, expressing modest bullish sentiment around the $80 level in the futures market.
Similarly, the LTC long/short ratio revealed that long positions had a small advantage of 50.07%. While the spread was small, buyers could try to use it as a springboard for short-term gains.
Source: Coinglass
