Planning to Short Litecoin (LTC)? These Levels Could Yield Profits
- LTC exhibited a price correction stance within a bullish marketplace.
- Near-term holders have seen massive profits over the past two days.
Litecoin recorded a massive uptick mid-week, hitting its highest mark since May mid-sessions at $83.36. That comes as Bitcoin reclaimed the psychological level of $16K. Nevertheless, Bitcoin noted a slight dip within this writing, losing 1.5% over the past 24 hours, welcoming price correction tendencies for LTC.
While publishing this article, LTC exchanged hands near $75.26 and appeared primed for further declines. LTC might secure new support floors at 61.8% & 50% Fibonacci retracement marks if the downside persists. Buyback at these value areas might yield profits for LTC investors.
Weakening 78.6% Fibonacci Support; Further Declines Impending?
The Fibonacci level at 78.6% was a crucial footing and a bullish block line. The alt tested this zone multiple times in the four-hour timeframe, and bears might breach it soon. While writing these lines, LTC bears threatened crashes beneath this area.
Also, technical indicators flashed the chances of a stretched bloodbath as bears gradually dominate. The RSI (Relative Strength Index) has suffered an extended plunge, pulling back from its overbought region. That confirms a colossal buying pressure dip, allowing sellers to regain momentum.
Moreover, the OBV (on balance volume) registered a declining trend, suggesting buying pressure and trading volume falloffs. Overall, Litecoin indicators show sellers will dominate in the coming day or a few hours. Such moves may see Litecoin’s price plummeting to secure new footholds at 61.8% – 50% ($69.9 – $65.66).
LTC’s dip might stretch if Bitcoin surrenders the support mark of $16K to fall further. Nevertheless, a candlestick closing beyond the $75.96 current support would cancel the above tale. That would see the alternative token trading sideways alongside 78.6% & 100% Fibonacci pockets or overpower a resistance.
Near-Term Holders Enjoy Profits, but
The 30d MVRV remained positive, according to Santiment. That means near-term Litecoin holders have witnessed gains since November 22. That timeframe coincides with an optimistic weighted sentiment. Nevertheless, press time data shows weighted sentiment dipped into the negative region while trading volume slumped.
That could suggest imminent price reversals, and Litecoin might resort to southbound movements. Near-term Litecoin enthusiasts should watch LTC’s sentiment and Bitcoin’s performance before placing their bets.
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