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- Litecoin has been trading within a tight price zone for the past five days.
- Market speculators took a cautious approach with a decline in Open Interest.
Litecoin [LTC] expanded its range building as the price hovered around the $64 midpoint. The bullish recovery from the $55 price zone has been below the 23.6% Fib level since August 18, with bulls lacking the buying pressure to break above dynamic resistance.
Read Litecoins [LTC] Price forecast 2023-24
Thus, LTC’s September price action remained mainly bearish, with sellers still in control.
Bulls remained trapped under selling pressure
Source: LTC/USDT on Trading View
LTC’s historical price action revealed a tendency for the altcoin to register volatile price swings. However, in recent times, LTC has been following the sideways price action in the market caused by Bitcoin [BTC] rising from $25k to $27k and then falling to $26k.
At the time of writing, Litecoin’s price remained stable at $64. It traded at this price for a period of five days, indicating that a breakout could occur soon. This was reflected by the Relative Strength Index (RSI) hovering around the neutral 50s.
Similarly, On Balance Volume (OBV) reflected the lack of significant price movements with its flat structure.
A bullish rebound requires buyers to move above 23.6% Fib ($69), with further gains at $78 to $80. For bears, an extension of flat trading volume could lead to a decline to $60.
Lagging price action resulted in a decline in Open Interest
Source: Coinglass
Market speculators reacted negatively to LTC’s sideways move, while Open Interest continued to decline. Dates of Coinalyse showed that OI fell by $9 million in the last 48 hours.
How much are 1,10,100 LTCs worth today?
Similarly, the Spot CVD showed a downward trend, with a lack of demand clearly visible in the futures market. Collectively, speculators preferred to stay out of the game due to Litecoin’s volatile nature.