Shorting Litecoin (LTC)? These levels could profit

In an otherwise bullish market, LTC displayed the characteristics of a price correction posture.

The most recent two days have been quite profitable for those who hold positions with shorter time horizons.
Litecoin had a significant surge in value over the middle of the week, rising to $83.36, its highest level since the middle of May. This comes as Bitcoin has regained the psychological milestone of $16,000 in recent trading. Despite this, Bitcoin has had a moderate decline as of the time of this writing, falling 1.5% over the course of the previous twenty-four hours, which is encouraging price correction tendencies for LTC.


During the time that this article was being written, the price of LTC traded near $75.26 and looked to be setting itself up for more drops. If the downward momentum continues, there is a chance that LTC may find new support floors at the 61.8% and 50% Fibonacci retracement points. LTC investors may be able to make a return from a buyback in one of these value zones.

Support from the 78.6% Fibonacci retracement falling apart; More Declines to Come?

The 78.6% level on the Fibonacci retracement was both an important grounding and a bullish block line. This area was probed by the alt many times over the last four hours, and there is a possibility that bears may break through it shortly. During the time that I was writing these sentences, LTC bears threatened to crash below this place.


Additionally, technical signs pointed to the likelihood of a prolonged carnage as bears steadily gained the upper hand. The Relative Strength Index (RSI) has been suffering from a prolonged drop, which has caused it to pull back from its overbought zone. This substantiates the massive decrease in purchasing pressure, which paves the way for sellers to regain their footing.

In addition to that, the OBV, which stands for "on balance volume," registered a downward trend, which suggests that buying pressure and trading volume have fallen off. Indicators for Litecoin suggest that sellers will be in the majority within the next day or even within the next few hours. It is possible that these moves will cause the price of Litecoin to plummet by 61.8% to 50% ($69.9 to $65.66) in order to secure new footholds.

If Bitcoin's price breaks below the $16,000 support level, the decline in LTC may continue for a longer period of time. On the other hand, the aforementioned story would be invalidated if the candlestick closed higher than the current support of $75.96. In that case, the alternative token's price would move in a range between 78.6% and 100% of the Fibonacci pockets, or it would overcome a resistance.

Profits are Realized by Short-Term Investors, but


According to Santiment, the 30-day moving average value of the MVRV remained positive. This indicates that holders of Litecoin for shorter time frames have made profits since November 22. This timeframe coincides with a positive-weighted sentiment that is weighted optimistically. Despite this, data available as of press time reveals that weighted sentiment has moved into the negative region, and trading volume has decreased.

This might indicate that a price reversal is about to occur, and Litecoin might start moving in the opposite direction. Before placing their bets, short-term enthusiasts of Litecoin should monitor the sentiment surrounding LTC as well as the performance of Bitcoin.


Ojike Stella

1727 Blog posts

Comments
Francis Precious 44 w

Fabulous