Because the market declined final week (and continues to take action), Litecoin was one of many few currencies to increase in worth.
CoinGecko studies that the worth of a single Litecoin is at $63.69 in the mean time. The token is up 8% within the final 24 hours, giving merchants and traders some sense of reduction. Litecoin (LTC) thus pulled off a shock, edging out the opposite cryptos within the prime 20 listing.
The choice cryptocurrency that has been round for some time seems to be gaining recognition amongst traders.
Solely 35% of LTC holders are worthwhile, per CoinMarketCap. The proportion of holders who would profit monetarily from a sale on the present time is thus diminished.
Whereas this rebound is encouraging, the present state of the market following the contagion that was FTX signifies that LTC could not be capable to keep away from extra market declines regardless of the uptick.
Outlook For Litecoin Seems to be Favorable
As issues stand, the market surroundings may be very unfriendly for bulls. Regardless of the market decline, a couple of cryptocurrencies have managed to rise into the highest 20.
The relative power index (RSI) for LTC is quickly approaching the oversold zone, indicating a pointy reversal from a bullish to a destructive development.
At its current degree of $63.69, the worth remains to be above the 38.20 % Fibonacci retracement zone.
Chart: TradingView
On a 4-hour timeframe, nevertheless, RSI values are rising, indicating a rising bullish momentum.
The present degree of assist is $61.81, which is a fairly important degree of assist given the current market circumstances.
At the moment, the market construction resembles a bullish descending triangle, with a probable bullish breakout across the $64.15 value degree.
Along with supporting a probable constructive breakout, the increasing Bollinger band signifies volatility within the coming weeks.
Because the bulls retest the $64.15 value resistance within the coming weeks, they need to observe the market surroundings.
Lengthy-term LTC traders look like promoting, whereas lengthy positions on LTC exceed brief positions, in line with CoinGlass.
With large brief liquidations occurring in LTC over the previous couple of days, this transformation in momentum is in stark distinction to current market circumstances.
What To Anticipate With LTC
LTC seems to be transferring towards the market, diminishing or dropping its hyperlink with BTC and ETH. Because the situation for Litecoin improves, bulls have to be cognizant of the present unfavorable market circumstances.
Defending the $61.31 assist is adequate to keep up LTC’s bullish momentum if it can’t breach the $64.15 resistance.
Crypto whole market cap at $787 billion on the weekend chart | Featured picture from ITNext, Chart: TradingView.com
