In early trading on Tuesday, Litecoin (LTC) price rose 12.16% to hit an all-time high of $58.96. This was the altcoin’s biggest single-day gain since March 29th. The increase came as a relief to LTC holders following Monday’s broader market decline.
However, despite the short-term rally, an assessment of LTC’s price movement on the 12-hour chart suggests that the coin may continue to face downward pressure.
Litecoin bulls remain defeated
As of this writing, LTC is trading at $58.29. Although down from Tuesday morning’s high of $58.96, the coin has posted a 10% price increase over the past 24 hours. However, this rally merely reflects an uptrend in the broader crypto market as altcoins face bearish headwinds.
The decrease in LTC’s on-balance volume (OBV) confirms the decrease in coin accumulation. This indicator measures the buying and selling pressure in the market for an asset. When this decreases, it indicates that selling pressure exceeds buying pressure, suggesting a bearish trend.
Moreover, LTC’s Chaikin Money Flow (CMF) is still below the zero line. This indicator measures how money flows into and out of the market for an asset. At -0.07 at the time of writing, the CMF of this coin indicates an increasing exit of liquidity from the market. Negative CMF values indicate market weakness and often portend sustained price declines.
Litecoin price analysis. Source: TradingView
Additionally, the LTC’s directional movement index (DMI) reading shows that the positive directional index (+DI) (blue) is lower than the negative directional index (-DI) (red).
An asset’s DMI measures the strength and direction of the trend. If +DI is below -DI, it suggests that the downtrend is stronger than the uptrend. This indicates the existence of bearish market conditions where selling pressure prevails, and the asset is likely to continue its downward trend.
Additionally, LTC’s ADX (Average Directional Index) (yellow), which measures the overall strength of a trend regardless of direction, is 37.90 at the time of this writing. When this line crosses 20, the market trend is said to be strong.
Read more: Litecoin (LTC) Price Prediction 2024/2025/2030
Litecoin price analysis. Source: TradingView
Therefore, LTC bulls may find it difficult to initiate a reversal from the current bearish trend in the short term.
LTC Price Prediction: Will the Coin Hit Two-Year Lows Again?
Monday’s market weakness caused LTC to close at $50, a two-year low. If the prevailing bearish sentiment strengthens and the stock loses its recent gains, the price could revisit this level or fall further to trade at $49.96.
Read more: How to buy Litecoin (LTC) and everything you need to know
Litecoin price analysis. Source: TradingView
However, if market sentiment changes and the bulls regain control, the LTC price could rise to $64.79.
Disclaimer
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