- LTC seemed to be testing a critical trendline resistance
Metrics pointed to a potential breakout on the charts
As a seasoned analyst with over two decades of market experience under my belt, I must say that Litecoin (LTC) is currently standing at an intriguing juncture. The charts suggest a potential breakout, but the resistance trendline around $63 has been a formidable obstacle thus far this year.
Currently, Litecoin (LTC) is attempting to push past a significant barrier near $63, aiming to maintain an upward trajectory.
Indeed, the bearish trend line for LTC was noticed getting closer, a line that has been robustly repelling the altcoin’s price increases since March. Essentially, this resistance level has thwarted several of the altcoin’s attempts to rise throughout the year.
Despite some previous uncertainty, there’s been a noticeable buildup of buying interest during recent trading periods. The lower highs that LTC has recently avoided indicate a growing assertiveness among buyers.
Looking at the graphs, the Stochastic RSI was getting close to an overbought region. This could signal a potential pause in price increases along the trendline. There might be a brief reverse in price (pullback) prior to any more upward trends.
Altcoin’s Open Interest on the rise
AMBCrypto’s analysis of Coinglass’s data indicated an uptick in the LTC’s future Open Interest.
Increased involvement in the market often triggers significant changes in prices. As more investors adjust their positions, the likelihood of a possible breakout significantly increases.
According to the long/short ratio data, there may be a slight bias towards long positions too.
It appears this suggests a general optimism in the market, with many traders expecting prices to rise. However, the current ratio remains relatively steady, possibly indicating that investors are exercising caution for now.
Is a liquidation squeeze in the making?
Ultimately, the liquidation heatmap showed a significant number of short positions were set at prices higher than the current market price when the data was gathered.
Should LTC successfully break through its resistance trendline, this action might initiate a chain reaction of liquidations. The resulting strong buying demand could potentially propel the price increase even more, leading possibly to an impressive price surge.
If LTC break above $63 with strong momentum, it could confirm this bullish scenario.
As a crypto investor, if we encounter a rejection at this level, it could be indicative of a period of consolidation ahead, or even a possible downtrend on the price charts.
Read More
- JASMY PREDICTION. JASMY cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- Top gainers and losers
- LUNA PREDICTION. LUNA cryptocurrency
- BOO PREDICTION. BOO cryptocurrency
- GOAL PREDICTION. GOAL cryptocurrency
- MONG PREDICTION. MONG cryptocurrency
- CTC PREDICTION. CTC cryptocurrency
- DUEL PREDICTION. DUEL cryptocurrency
- ELK PREDICTION. ELK cryptocurrency
2024-08-14 17:53