Over the past three weeks, volatility in the cryptocurrency market has decreased, and Bitcoin (BTC) price traded around $70,000. This period of uncertainty caused a sideways trend in most major altcoins. However, Litecoin faced increased selling pressure.
Critical Formation in Litecoin
After reaching a recent high of $89.6, the LTC price fell by 11.78% to $79. If the broader market continues its consolidation phase, will this correction deepen? Litecoin’s medium-term trend shows a bullish trend supported by an ascending trend line on the daily chart. The dynamic support, which helps buyers in a higher low formation, indicates that buyers continue to accumulate tokens at the market’s bottom.
This could be a significant sign of a sustainable uptrend. At the time of writing, Litecoin price is trading at $79.57 and seeking support at the mentioned ascending trend line. The long-tailed rejection candle on the trend line may indicate continued buying and that buyers could now counterattack.
Expert Commentary on LTC
However, recent information shared by Trader Kamikaze highlighted significant movements in the Litecoin market. According to IntoTheBlock’s data, approximately 432,070 addresses accumulated 6.67 million LTC at an average price of $82, with the purchase range varying between $81 and $83. This accumulation at these levels could indicate a significant investment.
Analyst Kamikaze notes that if LTC prices return to this range, some investors are likely to sell up to their breakeven point, potentially creating selling pressure. Therefore, consolidation below $82 is expected this week.
If the rising trend manages to stabilize Litecoin, a potential 11% recovery could reach the $88.7 resistance. The altcoin’s price has twice retreated from this resistance in five weeks, indicating high supply pressure for buyers. A breakout above this barrier could signal a shift in market sentiment from selling during rallies to buying during dips.
