Litecoin (LTC): Short Traders Should Consider the Inability to Overcome This LevelSeptember 4, 2022
Litecoin hasn’t witnessed massive volatility over the past few weeks, similar to other assets in the alt market. The previous month had LTC ranging in the $52 – $64 value area, a minor 22% price difference from the bottom.
Meanwhile, Bitcoin dropped beneath the support level of $20.8K after a massive rejection of around $24K during mid-August sessions. The USDT Dominance index has hiked within the previous month.
That showed investors fleeing the cryptocurrency space to hold Tether. More fear might emerge in the coming weeks, and LTC investors might leverage the resulting price action.
Litecoin 1Day Timeframe
The VPVR (Volume Profile Visible Range) placed the POC (Point of Control) at $55.07. Meanwhile, the Value Area High and Low stood at $69.3 and $42.68, respectively. The volume indicators showed that a large part of trading since June remained at extreme levels.
The price has created a range of $65 – $43.4 since June, figures close to the VAL and VAH. While publishing this content, LTC traded at $61.26, and the past couple of days indicated upside momentum for the altcoin.
The value area of $65 – $69 would likely oppose bulls’ intentions. Moreover, testing this level might present opportunities to short or sell Litecoin. Market participants can consider a stop loss beyond $70 and take profit at POC ($55.1) and VAL ($42.6).
The RSI (Relative Strength Index) has remained inside 60 – 40 since July. That indicated a range formation for the altcoin. While writing these lines, the indicator neared 60 and might encounter rejection at the 60 – 65 band. Also, the Stochastic Relative Strength Index stared at the overbought region.
The DMI (Directional Movement Index) also backed the range formation narrative. The ADX (Average Directional Movement Index) could not climb beyond the 20 level and steady there over the latest months.
That confirmed the absence of a massive trend behind LTC. The CMF (Chaikin Money Flow) also hovered within the (0) neutral level or below -0.05.
Litecoin’s indicators suggested the absence of enormous trends behind LTC plus some selling strength over the past five weeks. Thus, LTC will likely fail to overcome the resistance at $69. Bulls dominate the broad market, and LTC can witness a sharp dip within the upcoming weeks.