Litecoin to shed recent gains as sell-offs intensify

• Litecoin’s value elevated by virtually 5% up to now 24 hours.
• Nevertheless, value actions on a each day chart revealed continuous coin distribution.

Because the market recovers from the aftermath of final week’s liquidity exit, Litecoin [LTC] ranks as one of many property with probably the most positive factors within the final 24 hours, on-chain knowledge supplier Santiment famous in a tweet.

After #crypto market caps dropped sector-wide final week, a number of #altcoins are scratching their method again, significantly $LTC, $XRP, & $XLM. With market worth to realized worth metrics persevering with to point out merchants are down huge, do not be stunned if the development continues this week. pic.twitter.com/cX8q9Tcu7B

— Santiment (@santimentfeed) August 21, 2023

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Based on CoinMarketCap, the coin has gained over 3% up to now 24 hours, exchanging arms at round $66 per coin.

Santiment famous that the final market stoop would possibly linger within the new week, with the market worth to realized worth ratio of most property suggesting that holders have continued to promote at a loss.  

Regardless of the slight uptick within the final 24 hours, LTC’s arrange on a each day chart revealed that the coin would possibly shed these positive factors within the coming days. 

The flickering “Lites” don’t symbolize restoration

A broader have a look at LTC’s value confirmed that its value declined by 20% within the final week. As sentiment turned bitter on 15 August, the altcoin’s Superior Oscillator (AO) started to put up downward-facing purple histogram bars. 

The AO is a momentum indicator that tracks potential reversals out there. A bullish crossover happens when the AO crosses above the zero line, indicating that the momentum is popping optimistic. Conversely, a bearish crossover is seen when the AO crosses beneath the zero line, signalling that the momentum is popping detrimental.

 LTC’s AO was detrimental, with a worth of -18.89 at press time, suggesting that bears ran the present market.

Additional, the coin’s On-balance Quantity (OBV) has declined within the final week. The start of LTC’s OBV decline coincided with when its AO turned detrimental, lending credence to the above place.

When an asset’s OBV falls, it signifies that there’s extra promoting strain out there than shopping for strain, which frequently ends in a decline in an asset’s worth.

Learn Litecoin’s [LTC] Worth Prediction 2023-24

As well as, momentum indicators trended downwards at press time and have been positioned the identical because the starting of the month. At press time, LTC’s Relative Energy Index (RSI) was 22.72, whereas its Cash Move Index (MFI) was 28.18.

At these values, each indicators hinted that LTC would quickly be oversold if sentiments remained unchanged. Thereby placing additional strain on its value.

Supply: LTC/USDT on TradingView