After a interval of outperformance towards main crypto belongings, Litecoin’s (LTC) value dropped as little as $94, a 26% fall from the weekly open.
Whereas the commerce wars between the US, Canada, China, and Mexico proceed to strain the crypto market, a number of analysts have identified a possible alternative in Litecoin.
Litecoin dip follows “overly bullish commentary” in February
In February, LTC was one of many few altcoins that exhibited value dominance towards BTC. Litecoin remained at breakeven worth for the month, whereas Bitcoin confronted an 18% drop. Litecoin’s resilience led to constructive social commentary surrounding the crypto asset, which was largely dominated by the spot LTC ETF filings.
Litecoin handle exercise in February. Supply: X.com
Santiment knowledge identified these developments and recognized a rise in LTC lively addresses to 445,000 over the month.
Irrespective of the present market construction, Valeriya, a crypto and Foreign exchange dealer, said that Litecoin shows “indicators of reaccumulation.” The dealer added,
“Testing the indicated stage (POI) might present favorable circumstances for opening an extended place. Progress potential: 60%”
Litecoin 1-day chart. Supply: Valeriya / X
Related: Bitcoin no longer ‘safe haven’ as $82K BTC price dive leaves gold on top
Key Litecoin ranges to carry below $100
From a technical perspective, Litecoin trades in the next consolidation vary, the place the overhead resistance vary of $130 to $140 stays unbreached.
The every day chart reveals that the worth has remained above the 200-day exponential transferring common (200D-EMA) since Nov. 6, 2024. A break beneath the 200D-EMA may point out the early indicators of a excessive time-frame (HTF) bearish shift.
Litecoin 1-day chart. Supply: Cointelegraph/TradingView
Underneath these circumstances, the instant help for Litecoin stays between $92 to $100 and $80-$88. As illustrated within the chart, LTC retested help vary 1 ($92 to $100) on March 4 earlier than instantly recovering above the 200D-EMA.
The relative energy index (RSI) additionally dropped to 38, its lowest worth since Aug. 8, 2024, deviating beneath a 7-month low.
Information from IntoTheBlock added extra onchain confluence to the help ranges outlined within the chart. Between $79 and $90, a complete of 6.86 million LTC tokens had been held by 1.73 million addresses, whereas 1.11 million addresses held 17.84 million LTC tokens within the $90 to $108 vary.
Litecoin addresses presently holding LTC. Supply: IntoTheBlock
Thus, when it comes to buying and selling quantity, $108 and $90 is the instant help vary, whereas extra holders are between $79 and $90.
Related: How low can the Bitcoin price go?
This text doesn't include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.
