Analysis of Increased Selling Pressure on Litecoin
In the last three weeks, the cryptocurrency market has experienced decreased volatility, with Bitcoin (BTC) trading around $70,000. This period of uncertainty led to a sideways trend in major altcoins, among which Litecoin stood out due to increased selling pressure.
Critical Formation in Litecoin
Following a recent peak of $89.6, the LTC price saw an 11.78% decline to $79. If the broader market maintains its consolidation phase, there is speculation about the deepening of this correction. Litecoin's medium-term trend exhibits a bullish pattern supported by an ascending trend line on the daily chart. The dynamic support aids buyers in forming higher lows, suggesting ongoing accumulation of tokens at lower price points.
This accumulation could signify the potential for a sustainable uptrend. Currently, the Litecoin price hovers around $79.57 and is reliant on the mentioned ascending trend line for support. The presence of a long-tailed rejection candle on the trend line hints at continued buying interest and the possibility of a countermove by buyers.
Expert Commentary on LTC
Trader Kamikaze's recent insights shed light on substantial movements within the Litecoin market. Data from IntoTheBlock reveals that around 432,070 addresses have amassed 6.67 million LTC at an average price of $82, with the acquisition range spanning $81 to $83. This accumulation at these price levels suggests considerable investment activity.
According to Analyst Kamikaze, a potential return of LTC prices to this range might prompt certain investors to sell at breakeven points, leading to potential selling pressure. Consequently, a period of consolidation below $82 is anticipated for the current week.
If the upward trend can stabilize Litecoin, there is the potential for an 11% recovery towards the $88.7 resistance level. The altcoin has faced resistance at this price point twice in the last five weeks, indicating significant selling pressure from buyers. A breakthrough above this resistance could indicate a shift in market sentiment from selling during upswings to buying during downturns.
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