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- Bulls appear to be using a familiar support level to reverse July losses.
- The average coin age showed an upward trend to highlight bullish activity.
Litecoin [LTC] bounced off the $80 psychological level as bulls appeared to be exiting a dismal July. LTC had begun a significant bearish slide in July that wiped out all of its Q2 gains.
Realistic or not, here is the LTC market cap in BTC terms
Bulls want to piggyback on the market hype following Litecoin’s August 2 halving event. Although the halving event saw a drop in hash rate, Litecoin is counting on the growth of its mining sector to boost the price of LTC in the long run.
Psychological level of $80 saves bulls again
Source: LTC/USDT on trade view
Litecoin price action on the 12-hour time frame highlighted the importance of the $80 price level for bulls. Previously, it served as a major rallying point for LTC after periods of intense selling pressure.
A look south showed the $80 price level sparking a bullish run in early May and late June. Bulls are hoping for a repeat of the same after a 35% price drop in July.
The indicators on the chart flashed encouraging signals. The Moving Average Convergence Divergence (MACD) posted a bullish crossover and a few green bars above the zero mark. Similarly, the Relative Strength Index (RSI) made a notable push towards the neutral 50, indicating increasing buying pressure.
However, the first hurdle for bulls is the $85 resistance level. A session close to this level could net buyers $90-$95. On the other hand, price rejection may cause LTC to enter a range formation in the medium term.
Upward movement of the average coin age indicated active bulls
Source: Sentiment
The chances of a bullish recovery were heightened by Litecoin’s on-chain stats. Per Sanitationthe 90-day average coin age has increased since the end of July, showing an accumulation of LTC across the entire network.
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Similarly, the 30d Market Value to Realized Value (MVRV) ratio of 10% revealed that monthly holders had begun to make profits. Together, this could increase the likelihood of bulls embarking on a significant price reversal.