Despite its recent price dip, the MVRV ratio indicates that Litecoin (LTC) is undervalued. The MVRV ratio has brought to light an intriguing observation regarding LTC’s recent market behavior. These combined on-chain signals lend credence to the notion that underlying market dynamics hold promise for the bullish camp despite the challenging price scenario. The metrics tracking dormant circulation revealed a lack of substantial spikes, suggesting the absence of significant selling pressures. Throughout July, the 90-day average coin age steadily increased, indicative of ongoing accumulation within the network. However, amidst this uncertainty, the on-chain metrics painted a positive picture of bullish momentum. The recent price action placed the long-term bullish investors at a critical juncture where their decisions seemed pivotal. Rising Fortitude: LTC Buyers Show Resilience Amidst Price Slump Source: Santiment Therefore, the interplay of these factors highlighted the critical juncture at which Litecoin’s market stood, demanding a decisive response from bullish traders.
Failure to achieve this could open the door to potential additional losses. It underscored the importance of LTC bulls’ importance in upholding the $80 area and propelling prices upwards firmly. The proximity of the 78.6% Fibonacci retracement level (yellow) added significance to the situation. This crucial level now is a pivotal juncture, potentially shaping the cryptocurrency’s trajectory in the near term. The subsequent attempt to retest the $100 resistance zone, followed by a swift rejection, underscored the prevailing dominance of bears.Īs of the latest update, LTC’s value has descended to the bullish order block ranging from $81.4 to $88, visibly marked in cyan. The recent price action showed a bearish market structure as it tumbled below the $91.6 mark. These combined signals underscore a prevailing bearish trend shaping the recent market dynamics. This observation is further substantiated by the Awesome Oscillator’s bearish crossover on July 20th, aligning with the RSI’s indication.Īdded to the narrative, the On-Balance-Volume (OBV) declined throughout August, accentuating a rise in selling pressure within the market. The 1-day price chart reveals a persistent bearish sentiment as the Relative Strength Index (RSI) has remained below the neutral 50 mark since July 15th, indicating a consistent bearish momentum. Seizing Opportunities: Buyers Get a Second Chance with the Bullish Order Block Source: Tradingview The downward price trajectory post-halving draws unsettling parallels to the events 2019, raising valid concerns about the potential recurrence of a similar market scenario.
This apprehension is further fueled by the observed decline in the hash rate on the Litecoin network after the halving, indicating potential mining disruptions. Notably, a continuation of losses could potentially shift its overarching bias to a bearish stance on higher timeframes. The ongoing downtrend in LTC‘s price following its halving event is a source of growing unease among investors. As the current narrative stands, LTC is positioned within a crucial support zone, a juncture that could potentially shape its trajectory shortly. However, the following months of July and August presented a contrasting shift, marked by the emergence of bearish forces that began to exert their influence. Litecoin (LTC) experienced a notable surge in late June, with its price witnessing a remarkable 41% increase within merely a week, propelling its value from $81 to $115. Join Our Telegram channel to stay up to date on breaking news coverage
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