Litecoin investors remain worried about their investment fate, especially after the altcoin opened the week with a low, following last week’s bearish markets. Though LTC noted a brief hike, its near-term fate remained in the air.
Litecoin’s last week’s pullback saw the alternative token retesting its ascending support level. The latter represents a portion of the token’s price channel over the past eight weeks. Moreover, the alt has retested that support several times. And it shows weak signals upon the recent retest.
Litecoin pushed beneath the support level during the August 19 sessions, when it explored peaks of its crash. The token has traded along that line since. However, the price has significantly surrendered its power and capability to sustain beyond this mark.
Does Weak Support Signal Upcoming Things?
LTC’s press time price ($55) indicated that investors are hesitant about the upcoming move. For instance, addresses with over 1 million coins maintained steady balances within the past 24 hours. That confirms their patience to witness the next market moves before executions.
Also read:Meantime, addresses with 1K – 100K LTCs recorded some outflows over the past two days. The same cohort swiftly accumulated around the latest bottom before withdrawing some profits. Though Litecoin is yet to rebound from the support mark, it recorded a substantial on-chain volume increase since August 21.
That could suggest that retail investors have massively accumulated at the support line. Nevertheless, the retail market has the lowest effect on space. And that explains the token’s constricted upside. Also, they offer near-term profiteers exit liquidity.
The support level could have served as an entry zone for new wallets. That would reveal why new and active address counts have surged within the past two days. Moreover, the absence of a substantial uptrend shows retail buyers with restricted purchases accounted for the addresses, reflecting the volume decline. Alternatively, existing selling strength at current value areas neutralized their buying momentum.
Considering LTC’s struggle around its support floor & the somewhat inactivity of top whales, LTC investors should adopt caution. The market can still fluctuate in either direction. Bulls should ensure a comeback to avoid continued [rice suppression by bears. Interested individuals might wait for the fog to fade.
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