Litecoin (LTC) is a digital cryptocurrency that has recently experienced a rejection from the $75 price level. The current market structure for LTC is bearish and buyers are trying to push back with small bodies and long bottom wicks. The uptrend for the coin started on May 12 when the support was established at $69. Bullish moves gave a return of approximately 59% from the low of $65. After the correction, the price fell to $75. The current bearish push might bring the price to the major support level of $65.
Fundamentally, the Litecoin market's macro conditions are slowly improving. The possibility of the U.S. entering a recession in the second half of the year is increasing partially due to regional banking crisis. With this, the demand for alternatives to traditional bank deposits like gold and cryptocurrencies could grow. Litecoin's usage on earth is increasing with the transactions and active addresses surpassing both Bitcoin and Ethereum. On the upcoming halving event the block reward will drop from 12.5 to 6.25 and this could help with the bullish momentum.
At the same time, the basic technical parameters indicate bearishness. Price is trading below the 20,50,100, and 200-day EMAs, and Chaikin money flow score (CMF) of 0.20 represents that buyers have started entering the market to protect the support of $75. It is noteworthy that the longs/short ratio is 1.03, with 50.63% longs and 49.37% shorts, which means the participation of buyers has significantly increased in the past 24 hours.
Overall, Litecoin's market structure and current price action is bearish but the exhaustion of the bearish momentum could be seen. If buyers manage to break the downward trend and push the price above $82, then further gains towards $91.30 or even $102 are possible. Other factors that could help the coin grow are the recent collaborations with Mastercard to enhance usage and the halving event that is expected in August 2023. Major support and resistance levels for LTC are $75 and $69 respectively, and $91.30, and $102.
Ashley Carter
- 2023-05-13
Litecoin Rejected by $75 Support: What to Expect?
Litecoin recently experienced a rejection from the $75 price level. While the current market structure is bearish, buyers are trying to push back with small bodies and long bottom wicks. The upcoming halving event and recent collaborations with Mastercard make it a coin to watch out for.
