Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of 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 worth 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 worth 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 pressure 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
Supply: TradingView
Examination of the upper timeframe charts similar to 12-hour and one-day confirmed the market construction was bearish. Subsequently, on decrease timeframes, merchants trying to commerce with the development can search for shorting alternatives.
A set of Fibonacci retracement ranges (yellow) had 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 fashioned 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 could be anticipated to face a rejection close to the $53 mark because of confluence of the order block and the 61.8% stage.
The symptoms on the two-hour chart confirmed some bearishness as properly. 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 Stream (CMF) was shifting properly under the -0.05 mark. This denoted important money circulate out of the market, and heavy promoting stress.
Funding charges confirmed futures merchants flipped bullish over the weekend
Supply: Coinglass
The funding charges throughout main exchanges confirmed the funding fee on Binance went from damaging in current days to barely optimistic. The identical was true on Huobi. This instructed 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 previously 24 hours. Alongside the truth that Litecoin appeared to have flipped the $50 zone again to assist, there was a chance of the short-term bounce persevering with. The bearish order block at $52.5 will doubtless resist the bullish advance. A transfer under $50 might see LTC descend toward $44.