The Tight Consolidation Phase of Litecoin (LTC) Limits Price Movements
You may have noticed that Litecoin (LTC) has been stuck in a tight consolidation phase between $60 and $70 since mid-August. Despite several attempts to break above the $70 resistance level, the bulls seem to be lacking aggressiveness.
Latest data from CoinGecko shows that LTC is currently trading at $62.99, reflecting a 1.8% decline in the past 24 hours and a seven-day slump of 3.1%.
LTC bulls have been working hard to defend the crucial support level of $63, preventing the price from dropping below it. However, their efforts to push the price beyond $70 have been unsuccessful.
Technical Challenges Pose Obstacles for Litecoin Bulls
Taking a closer look at the technical indicators, the H12 bearish order book and the 50-day Exponential Moving Average (EMA) are presenting significant challenges for the LTC bulls.
Analysts suggest that Litecoin may continue its consolidation above the $63 range-high in the near future. However, the prevailing bearish pressure could hinder any major upward movement.
LTC’s On-Chain Activity Grows Despite Price Stagnation
Interestingly, despite the stagnant price, Litecoin’s on-chain data shows increased activity within its ecosystem. A separate report reveals that Litecoin’s share in global cryptocurrency payments has surged by an impressive 21% in the past four months.
This indicates that Litecoin remains a popular choice for transactions, even with its price remaining relatively stagnant.
However, bearish sentiment towards Litecoin has been growing recently. Another report shows a 19% increase in LTC bears in the past week, contributing to the current downward pressure on LTC’s price.
Hot Take: Litecoin Faces Challenges Amidst Stagnant Price and Bearish Sentiment
Despite on-chain activity showing promise, Litecoin remains trapped within the $60 to $70 range due to technical obstacles and significant sell orders. Additionally, growing bearish sentiments have weighed heavily on LTC’s price, making it a challenging period for Litecoin investors and enthusiasts.
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