LTC short sellers can watch out for a bounce to this resistance level

Disclaimer: The tips presented does no longer characterize monetary, funding, trading, or other forms of recommendation and is fully the creator’s opinion.

• Litecoin did no longer show cloak indicators of a leap in costs yet, even on the lower timeframes
• The imbalance to the north would show cloak a honest threat-to-reward short-selling different for LTC traders

Litecoin [LTC] saw an prolong in accumulation on-chain. But, the trace chart showed that there was as soon as a downtrend in progress on the larger timeframe. After the halving, the trace fell previous multiple red meat up ranges.

Learn Litecoin’s [LTC] Note Prediction 2023-24

The incapacity of the patrons to protect these set a matter to of zones signaled bears were dominant. Over the impending week, it was as soon as seemingly that additional losses may perchance per chance well per chance ensue for Litecoin. The set up can traders be aware to enter positions?

Litecoin showed an imbalance at $70 that is also retested ahead of rejection

A region of Fibonacci retracement ranges (light yellow) were plotted in response to the rally from $70.75 to $115. LTC was as soon as already under the lows from that rally. The market construction was as soon as bearish on the day-to-day timeframe.

Moreover, there was as soon as a honest trace gap across the $70 condominium highlighted in white. LTC witnessed a downward switch that started on 8 August. It went from $85.47 to $56, and the 50% tag for this switch stood at $70.74. This coincided with the low from 14 June that made the bearish breaker block from mid-June.

Hence, a leap toward the $70.75 stage was as soon as a probability within the impending days. It may perchance per chance per chance well per chance in part bear the imbalance and moreover retest the 50% stage of the earlier tumble. The OBV did no longer red meat up the premise of one of these leap as it has been in a company downtrend since July.

The RSI was as soon as moreover under neutral 50 since July, showing a downtrend in progress on the 1-day chart. Hence, a shorting different may perchance per chance well per chance show cloak itself attain the $70 tag but hasn’t materialized yet.

The metrics showed LTC was as soon as undervalued and saw an accumulation

The indicate coin age of LTC has been climbing bigger since gradual June. Even after the most modern losses within the trace, this metric persisted to climb bigger. The MVRV ratio was as soon as deeply negative to show cloak an undervalued coin.

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The age-consumed metric did no longer glimpse a noticeable spike after 18 August, which showed one other wave of intense selling did no longer occur. Total, the metrics showed that sellers will be exhausted quickly and LTC may perchance per chance well per chance register some beneficial properties. The findings from the trace chart showed traders is at threat of be bearishly biased within the impending weeks.