Litecoin might resume the downtrend after a minor bounce, here’s why

Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.

• Litecoin famous a agency bearish market construction and momentum on the 4-hour chart.
• The upper timeframe help zones have been convincingly breached, paving the way in which for additional losses.

Litecoin [LTC] noticed its halving happen on 2 August. The hash fee has climbed since then, and the mining problem elevated because the mining reward decreased. However this development may start to unwind soon.

Learn Litecoin’s [LTC] Price Prediction 2023-24

On the value chart, the development has been bearish in latest weeks. The asset has misplaced vital ranges of help stretching again to July, and the downtrend has not abated in August. Whereas a continuation was possible, a bounce towards $70 was additionally doable.

The H4 truthful worth hole on the Litecoin chart may appeal to costs increased

Supply: LTC/USDT on TradingView

The resistance zones at $84 and $70 have been demarcated in pink and signify a former bullish order block on the 1-day chart. After LTC breached these zones, they have been flipped to a bearish breaker. The one at $70 was established in mid-March, and the rally to $100 started on this space.

The previous few days of worth motion confirmed sellers have been overwhelmingly sturdy. Furthermore, the Fibonacci retracement ranges confirmed that, for the reason that 78.6% stage based mostly on the transfer upward was damaged, it was possible that LTC would proceed downward to the 23.6% extension stage southward at $60.23.

There was an FVG on the H4 chart that prolonged from $65.97 to $72.79 that Litecoin left behind throughout its fast descent on 17 August. Due to this fact, a bounce to $72 was doable to fill this hole earlier than the costs have been compelled decrease as soon as once more.

The Open Curiosity chart confirmed sidelined speculators as funding charges remained adverse

Supply: Coinalyze

The bearish conviction has not left the Litecoin market but. The short-term knowledge from Coinalyze for the previous few days confirmed that after the steep fall, the funding fee flipped negatively and has stayed that approach since.

How a lot are 1, 10, or 100 LTC worth at present?

Litecoin slowly climbed increased from $63 to $66.4 over the weekend, however the Open Curiosity didn’t see a notable transfer increased. Over the previous few hours, it appeared to tick upward, displaying minor short-term bullishness.

The spot CVD was pushing increased too. Collectively they confirmed a small inflow of capital, however possible not sufficient to interrupt the market construction.