Will Litecoin Cross $60 After Fed Rate Hike?July 28, 2022
Litecoin has encountered resistance at $60 in the course of its recovery. The asset’s bulls have equally shown signs of weakness in the same area. But the cryptocurrency was able to stave off losing significant ground as it held to its 50 daily moving average.
A Nerfed Upside for LTC
Litecoin successfully managed to hang on above its 50 daily moving average for nearly 10 days. As of the time of this report, the asset sold for $59.85. It is up by 1.39% from its opening price for the day.
The relative strength index also moved in the direction of the overbought area. Meanwhile, the money flow index simply brushed over the line of 50. The relative strength index above 50 provided a healthy signal for the token to be re-accumulated.
Litecoin’s recent bullish move was curbed and limited under the $60 level. This was during the same period that the 60 days static circulation indices recorded a steep increase. The indices increased to 1.67 million LTCs on the 19th of July from 6761 on the 18th.
This translates to having a selling pressure on $96 million entering the market. Much more, the number of active addresses jumped by 71,000 in the same period under review.
On the other hand, July 25th to 26th saw some increase in static circulation from 7,520 LTC to 16,239. Whereas, the number of active addresses fell by as much as 60,000.
LTC Tokens, To Hold or to Sell?
Nevertheless, the amount moved this time was not much in comparison to last week. Yet, it was just sufficient to generate an increase. The rare development might be ascribed to the huge profit-taking that followed the last rally.
After all, the result that followed was a limited increase since the resultant selling pressure beckoned on the bears. The following downside has also been very limited.
The foregoing simply implies that investors are holding on to their LTC assets. It is perhaps now for the long-term.
Investors might be getting incentives to hold on to their LTC tokens rather than sell them. It is more important now that the asset has got status of a privacy coin.
Traders might be excited to have LTC profits in the short term. However, the asset is still undervalued from the perspective of an all-time high, and the long term.
The general crypto market is staging a rebound from the long bearish market and LTC should benefit. However, bulls must be careful not to fall off the current trend.