Litecoin (LTC) has been trading within a range formation in the past two months. At the time of writing, Litecoin was approaching a significant resistance level. However, breaking this level may not necessarily result in a strong bullish movement.
Current Metrics for LTC!
A recent technical analysis indicated that LTC was trading at its lowest level in two years. However, the rise of Bitcoin (BTC) on Monday may imply that Litecoin has gained some momentum, but these gains quickly retreated. Can the bulls repeat the same scenario once again?
Since mid-September, Litecoin has been trading in a range from $68.3 to $57.8. The mid-level was $63 and has been tested several times as both support and resistance in recent weeks. Additionally, there was a bearish breakout block in the $65-73 range drawn from the daily price chart. When combined with the mid-range resistance, it outlined the main lines of a broad region under bearish dominance.
The relative strength index (RSI) climbed above the neutral 50 and the market structure may be on the verge of entering a bullish trend. In contrast, the on-balance volume (OBV) continued its downward trend since September, which may reflect the lack of demand in the market. The Cumulative Liq Levels Delta showed a bullish trend. This metric tracks the cumulative difference between all long liquidation levels and all short liquidation levels over time. Positive values indicate more long liquidation levels, while negative values indicate more short liquidation levels.
The Critical Level for Litecoin!
Moreover, there were significant levels of short liquidation, especially at $63.66 and $64.04. $65.3 was another level that could be tested before the downtrend. The price movement and technical indicators of the cryptocurrency indicated a possibility of a minor uptrend.
Hyblock’s data also supported these findings and revealed more precise levels where the downtrend could occur. If Bitcoin retraces its last move to the $29.4 thousand level, Litecoin is expected to show a short-term downtrend.
