Litecoin Faces Potential Trend Reversal Amid Bearish Market Momentum
Litecoin Price Forecast: Reversal in Sight
The recent price forecast for Litecoin suggests an imminent trend reversal. After a ten-day downward movement, which followed a price increase to $77, a move towards $60 seems likely due to the price action and the average resistance.
Bearish Market Structure
Litecoin [LTC] is showing a bearish market structure on the daily chart. Furthermore, it fell below the $67.38 mark and tested it again as resistance at the time of reporting. To the north, $70.5 represented another level of resistance. The technical indicators did not yet support a bullish trend. The buying pressure was not enough to push Litecoin above the key resistance levels in the north. However, a short-term change is emerging.
Price Action in the Range
Since November, LTC has struggled to break through the resistance zone of $77-$79.5. In early January, it fell to as low as $57.71, almost perfectly testing the low of September 11th. At the time of reporting, the median mark served as strong resistance. In addition to the price, the OBV (On-Balance-Volume) also remained within a range. The RSI (Relative Strength Index) reflected the bearish momentum alongside the market structure. A rise above $72.7 would tip the market structure in the opposite direction. Therefore, a bearish trend was justified.
Increased Demand for Litecoin
Although the OBV on the higher timeframe showed that it was stuck within a range and recorded a decline in the past week, the Spot-CVD showed a slight increase in the last three days. The open interest has remained flat for the last three days, while Litecoin has risen slightly from $64 to $66.7. This corresponds to an increase of almost 4%, but the sentiment was still lukewarm.
Neither the spot buyers nor the futures traders were strong enough to force a trend reversal for Litecoin. However, the small increase in spot buying was an early signal that buyers are gradually entering the market.
Note: The information presented here does not constitute financial, investment-specific, trading-related, or any other type of advice and is solely the opinion of the author.
Sources: AMBCrypto, TradingView, Coinalyze
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