Litecoin bulls have a shot at reversing recent losses – here’s how

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.

• Litecoin value motion confirmed a transfer beneath $80 may very well be adopted by an prolonged downtrend.
• The on-chain metrics painted a hopeful image for the beleaguered bulls.

Litecoin [LTC] noticed a powerful pump in late June. The value gained 41% inside every week as LTC surged from $81 to $115. However July and August noticed bearish stress start to dominate. On the time of writing, LTC was buying and selling at an important assist zone.

Is your portfolio inexperienced? Verify the Litecoin Revenue Calculator

Any additional losses for LTC would flip its greater timeframe bias bearish. The lower in hash price on the community after the Litecoin halving occasion was a trigger for concern. The downtrend in costs after the halving confirmed {that a} repeat of 2019 was a chance.

The bullish order block introduced an opportunity for patrons to redeem themselves

Supply: LTC/USDT on TradingView

On the 1-day value chart, the RSI was beneath impartial 50 since 15 July, displaying bearish momentum. The Superior Oscillator made a bearish crossover on 20 July, reinforcing the discovering from the RSI. The OBV started to slip decrease in August to focus on elevated promoting stress.

The value motion confirmed the market construction was bearish after the autumn beneath $91.6. The next retest of the $100 resistance zone and rejection confirmed bears had the higher hand. On the time of writing, LTC sunk to the bullish order block at $81.4-$88, highlighted in cyan.

The 78.6% Fibonacci retracement degree (yellow) was shut by. Collectively, these components underlined that LTC bulls should defend the $80 space and drive costs greater. In the event that they fail to take action, additional losses have been doubtless.

LTC patrons may very well be gaining energy amidst the value hunch

Supply: Santiment

Whereas the value motion confirmed the long-term bulls have been in a do-or-die state of affairs, the on-chain metrics signaled bullish energy. The 90-day imply coin age has been rising in July, displaying accumulation throughout the community. The dormant circulation metric famous no important spikes in July both, which meant giant waves of promoting weren’t seen.

How a lot are 1, 10, or 100 LTC value right now?

The MVRV ratio famous that LTC was an undervalued asset in latest days after its value hunch. This doesn’t assure a restoration, however it embellished the possibilities that the bulls have.

The halving occasion in 2019 noticed a rally roughly a month earlier than the occasion. It was adopted by an prolonged downtrend and consolidation section that took 500 days after the halving to interrupt above the extent LTC was buying and selling at halving.