- Litecoin has been on a downward trend for the past ten days after peaking at $77.
- A move towards $60 seemed likely based on the price action and mid-range resistance.
Litecoin [LTC] has a bearish market structure on the one-day chart. Moreover, it dropped below the USD 67.38 mark and again tested the same as resistance at the time of writing. To the north, $70.5 was another resistance level.
The technical indicators did not yet support a bullish bias. The buying pressure was not enough to push Litecoin past key resistance levels in the north. However, a short-term shift began.
The range-bound price action
Since November, LTC has struggled to break above the $77-$79.5 resistance zone. In early January, the price fell to $57.71, almost perfectly retesting the September 11 low. At the time of writing, the middle class served as a strong resistance.
Source: LTC/USDT on TradingView
In addition to price, OBV also remained within a range. Meanwhile, the RSI reflected bearish momentum alongside the market structure. A rise above $72.7 would tilt the market structure in the opposite direction.
A bearish bias was therefore justified. A move to the lows of $63.19 and $61 could occur if the price drops into the next liquidity pool.
Demand for Litecoin has increased marginally
While the higher timeframe OBV showed it to be within a certain range and saw a dip over the past week, the spot CVD saw a small increase over the past three days.
Source: Coinalyse
The Open Interest has remained flat over the past three days, while Litecoin rose slightly from $64 to $66.7. This was an increase of almost 4%, but sentiment was still lukewarm.
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Neither the spot buyers nor the futures traders were strong enough to force a turnaround for Litecoin.
Still, the small increase in spot buying was an early signal that buyers were trickling into the market.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.