Litecoin has experienced a notable 12.16% price increase, reaching a temporary high of $58.96. This surge marks the altcoin’s most significant single-day gain since late March, providing relief to LTC holders, who suffered market-wide declines the previous day. Despite this short-term boost, a closer examination of Litecoin’s 12-hour chart suggests the cryptocurrency may continue to face downward pressures.
What’s Happening with Litecoin?
Currently, Litecoin is trading at $58.29, down slightly from its peak. The token has recorded a 10% increase in the last 24 hours, mirroring a broader upward trend in the cryptocurrency market. Despite these gains, Litecoin faces bearish headwinds that could impede further growth.
The On-Balance Volume (OBV) indicator for LTC has been declining, indicating reduced token accumulation. This metric, which measures buying and selling pressure, shows that selling pressure currently outweighs buying pressure, signaling a bearish trend for the cryptocurrency.
LTC Chart Analysis
The Directional Movement Index (DMI) for Litecoin also indicates a bearish trend. The positive directional indicator (+DI) is currently below the negative directional indicator (-DI), suggesting that the bearish trend is stronger than the bullish one. Additionally, the Average Directional Index (ADX) stands at 37.90, confirming a strong market trend, which could make it challenging for bulls to reverse the current bearish outlook.
Key Insights for Traders
- Monitor OBV and DMI indicators closely for signs of continued bearish pressure.
- Watch for potential price retracement to the $50 level if bearish trends intensify.
- Look for a resistance breakout, targeting $64.79, if market sentiment shifts bullish.
Monday’s market decline pushed Litecoin to a two-year low of $50. Should the bearish trend continue, LTC could revisit this level or dip further to $49.96. Conversely, if market sentiment changes and bulls take control, Litecoin may aim for a breakout, with the first target being the resistance line at $64.79.