Litecoin price hit a 14-day high of $68 on August 18th, reflecting a 37% rebound from the monthly time frame low recorded on August 5th. On-chain data trends suggest early profit-taking. How will LTC react next week?
Litecoin breaks above $65 resistance.
Over the past two weeks, Litecoin has been a standout performer among the top 20 ranked cryptoassets. The recent legalization of crypto mining in Russia appears to be one of the main catalysts behind the rise in LTC.
Litecoin Price Analysis LTCUSD | TradingView
Investor sentiment towards Proof-of-Work coins like LTC has improved significantly since the announcement of Russia’s new law on cryptocurrency mining. The shaded area in the chart above shows how LTC prices have skyrocketed over the past 14 days, dating back to the massive market crash on August 5th. As of August 19th, LTC is trading above the $65 mark, reflecting an increase of 37.65%.
Notably, within this period, Litecoin has outperformed major proof-of-stake coins such as Ethereum and Solana, with the market for PoW coins like Litecoin increasing due to improved international regulatory stance regarding crypto mining. This confirms the outlook that demand has increased. However, having established a stable base of support above the $65 area, Litecoin price now faces a major obstacle that could prevent the rally from entering the next phase.
Short-term trader looking to take early profits with $97 million worth of LTC
After breaking the $65 resistance level, the number of sell orders increased, suggesting that the bullish trend may be invalidated. This suggests that short-term traders who bought LTC during the market crash around August 5th are looking to cash out some of their profits after weeks of outperforming the market.
The Exchange Market Depth metric aggregates Litecoin orders across various crypto exchanges and provides a comprehensive view of market demand and supply.
Litecoin Exchange Market Depth | Into the Block
According to Exchange Market Depth data, the total buy orders for Litecoin amount to 1,394,380 LTC and the total sell orders amount to 1,448,100 LTC. At an average bid price of $66.93, the buy order value would be approximately $93.3 million. Conversely, sell orders valued at an average ask price of $66.96 would be approximately $96.96 million. The difference between the total amount of buy and sell orders is -$3.64 million, indicating that the amount of sell orders exceeds the buy orders.
This imbalance in market demand and supply dynamics indicates a bearish outlook. A large number of sell orders, especially from the bears who were in control until a few days ago, could hinder Litecoin’s further progress. A lack of demand could lead to a price correction as the week progresses.
LTC Price Prediction: Big hurdle at $70
Looking ahead, Litecoin will face a significant resistance level at $70. The Ichimoku cloud and RSI divergence indicators suggest a bearish outlook in the short term. The Ichimoku cloud, often used to identify trends and reversals, shows resistance near $70, which coincides with the top of the cloud. This suggests that Litecoin may struggle to break above this level in the short term.
Litecoin price prediction | LTCUSD
Additionally, the RSI divergence indicator, which measures the strength of price movements, is currently at 53.06, indicating that the upward momentum may slow. This bearish divergence increases the likelihood of a rebound, especially if sell orders continue to outnumber buy orders.
If Litecoin fails to break out of the $70 resistance, it could see a pullback to the $63.49 support level. Below this level, Litecoin is likely to retest the $60 support zone. Conversely, a successful breakout of the $70 resistance could open the door for a rally towards the $75-$80 range. However, given the current market conditions and order book imbalances, the odds are leaning towards a bearish correction.
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