Litecoin (LTC) Price Analysis: Will the Uptrend Continue?
The price of Litecoin (LTC) experienced a temporary pause in its uptrend at $72, following a commendable rally from its support level at $60 in October. The coin reached highs of $115 before succumbing to the crypto winter and erasing all gains made this year. Despite an 83.46% drop from its all-time high of $410, LTC still maintains a 5,800% premium above its all-time low of $1.15.
Technical Update on Litecoin Price
LTC faced a setback on Thursday after sustaining an impressive rally for over a week. The support level at $70, which had been expected to absorb selling pressure, overwhelmed the bulls and resulted in a dip to $66. While Litecoin has recovered to trade at $67.67, the momentum behind the coin has significantly decreased.
The Directional Movement Index (DMI) is approaching a crucial junction that will determine whether declines will continue or if the uptrend will resume in the short term. Traders looking to short LTC should wait for the +DI line to cross beneath the negative -DI line before activating sell orders. Long entries should confirm that the +DI line remains above the -DI line and moves away from it.
The 100 Exponential Moving Average (EMA) holding above the long-term 200 EMA suggests that bulls still have control despite the correction. Traders should be patient and allow Litecoin to resolve the current situation before making any decisions.
Increase in Protocol Activity
Data from blockchain analytics platform Santiment reveals a significant increase in protocol activity on the Litecoin network. Active addresses on the blockchain spiked to 319k as crypto prices surged over the past week. Whale transactions also saw a significant jump, reaching levels last seen in June.
The shift in previously dormant LTC suggests that more coins are beginning to circulate, leading to increased volatility. This spike in dormant LTC could trigger a sell-off if the coins are moving to exchanges, or it could provide liquidity to support a larger rebound to $100.
Hot Take: Patience is Key for Litecoin Investors
For now, it is crucial for traders to exercise patience and wait for Litecoin to resolve the stalemate. Action above $70 or declines below $67 will provide clearer indications of the coin’s next move. It is advisable to do thorough market research before investing in cryptocurrencies and to stay informed about price trends and market forecasts.
Disclaimer: The content presented here reflects the personal opinion of the author and is subject to market conditions. Conduct your own research before investing in cryptocurrencies, as neither the author nor the publication holds any responsibility for personal financial loss.
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