Litecoin [LTC] investors enjoyed profits last week as the coin showed signs of resurgence. Was this because of Litecoin’s achievements, or was it just an outcome of Bitcoin [BTC] gaining upward momentum? Let’s have a closer look at what’s going on with Litecoin.
What is up with Litecoin?
CoinMarketCap’s data revealed that Litecoin’s price surged by more than 3% in the last seven days. At the time of writing, LTC was trading at $70.58 with a market capitalization of over $5.2 billion.
Though this at first glance might look bullish, the episode might have just been a consequence of Bitcoin’s price gains. As BTC is the market leader, altcoins often tend to follow the price action of BTC. In fact, Santiment also posted a tweet highlighting this possibility.
It appears that Litecoin’s bullish streak has ended at press time. As per CoinMarketCap, LTC was already down by 0.5% in the last 24 hours. To better understand what to expect from LTC, AMBCrypto checked its metrics.
Going forward
We found that LTC faced a strong resistance level near the $71 mark, which it had failed to breach over the last week. Going southward, the coin has a support level near the $70.52 mark.
If the coin’s value falls under that, it might trigger a further downtrend in the days to come.
Since there was a possibility of a continued southward price movement, AMBCrypto checked Litecoin’s daily chart. Our analysis revealed that LTC’s Relative Strength Index (RSI) registered a downtick in the recent past.
Additionally, its Chaikin Money Flow (CMF) also followed a similar declining route. These two indicators suggested that investors might witness a further downtrend, which might result in LTC plummeting below its support level.
Nonetheless, the MACD remained bullish as it displayed a bullish upper hand in the market.
Like most of the market indicators, sentiment around the coin also remained bearish. Our analysis of Santiment’s chart pointed out that after a spike on the 8th of February 2024, LTCs weighted sentiment went into the negative zone in the following days.
This indicated that investors at large were not confident in LTC and expected its price to drop.
While sentiment turned bearish, Litecoin’s social volume remained high, reflecting its popularity in the crypto space.
Source : AMBCrypto by Dipayan Mitra / Feb 10, 2024