Litecoin: Why the FUD around LTC may not be all bad for investors
Journalist
Posted:
- LTC could rebound far larger than $72 within the coming days.
- Lengthy-term holders have hesitated from liquidating their LTC positions.
Litecoin [LTC] is among the main altcoins experiencing intense damaging sentiment, in accordance with knowledge from Santiment. AMBCrypto checked the crypto evaluation instrument and discovered that the coin’s Weighted Sentiment was right down to -2.415.
Weighted Sentiment measures the distinctive social quantity in regards to the notion the market has a few mission.
So, the decline within the metric implies that the broader market was not bullish on LTC. It would look like the market is true to decrease their expectations for LTC.
Supply: Santiment
It’s because the coin has been consolidating between $70 and $73 for the previous couple of days.
Whereas the sentiment tilts towards Concern, Uncertainty, and Doubt [FUD], it may be the catalyst that triggers a bounce for LTC. It’s because, traditionally, excessive damaging sentiment is an indication of a bullish restoration.
In an fascinating twist, Litecoin’s bullish trait was not solely proven in its short-term projection, however there was a obvious signal proven by the Liveliness.
Liveliness decreases as long-term holders accumulate to HODL. HODL is an acronym for Maintain On to Pricey Life, and it implies that traders purchase tokens to maintain for a protracted interval.
If the Liveliness decreases, then it means long-term holders are liquidating their place. At press time, Litecoin’s Liveliness was 0.70, indicating that accumulation was extra current than distribution was.
Supply: Glassnode
AMBCrypto additionally checked the technical a part of LTC if accumulation outpaced distribution.
In accordance with the Accumulation/Distribution (A/D) indicator, there have been extra purchase orders than promote ones for the coin. This suggests that LTC has the potential to rise far more than $72 within the brief time period.
The 4-hour LTC/USD chart additionally thought of the Relative Power Index (RSI).
On the time of writing, the RSI was 56.55. This was an indication that LTC had exited its overbought state and will head southward. Ought to shopping for strain enhance for the coin, then a transfer within the $80 path could now be invalidated.
Supply: TradingView
One other metric to contemplate is the funding fee. Funding charges signify the distinction between the spot value of a cryptocurrency and the perpetual futures market value.
If the funding fee is constructive, it means merchants are bullish on the value motion. Alternatively, a damaging funding fee suggests a bearish sentiment.
At press time, LTC’s funding fee was 0.023%. This studying suggests that there are extra bullish positions open available in the market than shorts.
The rebound prospect was additionally supported by social dominance. Social dominance compares the dialogue round an asset with others within the high 100.
Supply: Santiment
Is your portfolio inexperienced? Test the Litecoin Revenue Calculator
Litecoins’ social dominance on the time of writing had dropped to 0.515%. This suggests that there was not a variety of hype across the coin.
When it comes to the value motion, it means LTC was nowhere close to its native high. Due to this fact, there’s a excessive probability of an upside.
