Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.
- The upper timeframe construction stays bearish for Litecoin
- Response on the $52 zone might reveal the trail ahead
Litecoin [LTC] has confronted resistance on the $55 mark since mid-September when the value crashed from $58 to $50. In October, LTC confronted rejection at this resistance but once more. The downtrend of the previous two weeks was pronounced on the decrease timeframes.
Right here’s AMBCrypto’s Price Prediction for Litecoin [LTC] in 2022
A recent article on the value motion of Litecoin highlighted how the upper timeframe bias was bearish. The multi-month vary’s mid-point lay at $54, and the lows at $43.3. Can the bears power Litecoin beneath $50 as soon as extra, and finally as far south as $44?
Bearish order block at $52.5 however $50 was reclaimed by the patrons
Examination of the upper timeframe charts reminiscent of 12-hour and one-day confirmed the market construction was bearish. Subsequently, on decrease timeframes, merchants seeking to commerce with the development can search for shorting alternatives.
A set of Fibonacci retracement ranges (yellow) have been plotted based mostly on LTC’s transfer down from $55.73 to $48.32. It confirmed the 61.8% and 78.6% retracement ranges to lie at $52.9 and $54.14 respectively.
Prior to now week, a bearish order block shaped at $52.5. The short-term transfer up was rebuffed at $52.9 and a break in market construction to the draw back occurred, marking it as a bearish order block. Subsequently, Litecoin might be anticipated to face a rejection close to the $53 mark attributable to confluence of the order block and the 61.8% degree.
The symptoms on the two-hour chart confirmed some bearishness as effectively. The Relative Energy Index (RSI) climbed again above impartial 50, however didn’t sign an uptrend in progress. The RSI was unable to push previous the 60 mark. In the meantime, the Chaikin Cash Circulate (CMF) was shifting effectively beneath the -0.05 mark. This denoted important money move out of the market, and heavy promoting strain.
Funding charges confirmed futures merchants flipped bullish over the weekend
The funding charges throughout main exchanges confirmed the funding price on Binance went from unfavorable in latest days to barely constructive. The identical was true on Huobi. This advised that speculators within the futures market had been bearish however flipped their stance just lately.
The Long/Short Ratio on Coinglass confirmed that Litecoin bears had a slight benefit prior to now 24 hours. Alongside the truth that Litecoin appeared to have flipped the $50 zone again to assist, there was a risk of the short-term bounce persevering with. The bearish order block at $52.5 will possible resist the bullish advance. A transfer beneath $50 might see LTC descend toward $44.