Litecoin price fell below $63 on August 22, 2024, dropping 8% during the fourth consecutive day of decline. On-chain data highlights profit-taking among short-term traders as the main bearish factor behind the ongoing LTC correction.
Litecoin rises 8% on Russian rally
As the crypto market recovers from the August 5th crash, Litecoin and XRP soar to the top of the charts. XRP benefited from a favorable ruling in the Ripple vs. SEC case, while LTC, one of the top five largest proof-of-work (PoW) projects, legalized crypto mining around August 8th. This was boosted by a new Russian law.
Litecoin price had a volatile start to the month, dropping to a three-month low of $50 on August 5th, but rebounded by an impressive 37%, rising to $68 by August 18th. .
Litecoin Price Analysis LTCUSD | TradingView
However, recent trends suggest that the market has entered a correction phase over the past week as strategic short-term traders who bought LTC during the market crash in early August have begun to book profits. As of August 22nd, Litecoin is trading around $63, down 8% for the fourth consecutive day of decline since August 18th.
The failure to break above the $70 resistance level likely triggered a profit-taking frenzy among traders. This suggests that the market is wary of pushing LTC higher without a strong catalyst, further reinforcing the bearish sentiment.
Litecoin faces selling pressure as order book data reflects bearish outlook
A closer look at Litecoin’s exchange market depth data reveals a rather bearish outlook. Two main factors contribute to this. That is a significant imbalance between sell and buy orders and weaker demand for LTC.
First, the total sell orders significantly exceed the buy orders, resulting in a total volume imbalance of approximately 63,000 LTC.
Litecoin Exchange Order Form LTCUSD | Into the Block
This is reflected in the average buy and sell prices, which are nearly identical at $63.30 and $63.33, respectively. This small difference highlights the lack of upward momentum in prices as sellers dominate the market and suppress bullish attempts.
Second, the weakening demand for Litecoin is also evident in the decline in buy orders, which are struggling to keep up with the aggressive selling. The current market depth indicates that buyers are hesitant to enter the market at current levels, reflecting widespread distrust in Litecoin’s short-term prospects. Unless buying pressure increases significantly, the market is likely to fall further.
LTC Price Prediction: Bulls Fight to Maintain $60 Support
Litecoin is trading around $63, and bulls are currently fighting to maintain the important $60 support level. Two technical indicators on the chart, Keltner Channel (KC) and Parabolic SAR (Stop and Reverse), are bearish and indicate a possible continuation of the downtrend.
First, the Keltner channel indicates that Litecoin has not been able to sustain its recent gains. The price is below the KC median line, indicating a change in momentum to the bears.
LTCUSD
The upper band of KC, which previously served as resistance near $70, remains untested as LTC struggles to maintain its upward momentum. This suggests that the $70 resistance level may remain a strong barrier in the short term.
Secondly, the parabolic SAR indicator is above the current price level, confirming the bearish trend. Historically, this indicator has been reliable in identifying trend reversals, and its current position indicates that bearish momentum is still intact. If Litecoin fails to sustain the $60 support level, the next significant support is likely to be around $55, a level that coincides with the KC lower band.
In summary, the bearish setup highlighted by the market thickness and recent retracement suggests that Litecoin may struggle to regain the $70 level in the short term. The $60 level is very important as a break below it could lead to further downside and push LTC back into the $55-$50 range.
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