Sheldon McIntyre, CMT
FXStreet
- Litecoin price stalls again at the 78.6% Fibonacci retracement of the 2017-2018 bear market.
- Ascending Channel governing Litecoin price action since the fall of 2020.
- IOMAP data displays minimal resistance until $350.00.
Litecoin price failure today at the critical Fibonacci level is the second time since mid-April and lowers the odds that LTC can overcome the resistance and launch a substantive test of the all-time high at $420.00.
Litecoin price in need of a dominant catalyst
The IntoTheBlock In/Out of the Money Around Price (IOMAP) data shows almost no resistance from the current Litecoin price until $350.24, which is slightly beyond the 78.6% retracement level mentioned above.
Likewise, Litecoin shows limited support until a cluster between $259.85 to $269.27. A total of 103.49k addresses bought 3.39 million LTC at an average price of $265.07, which is slightly below the 61.8% retracement of the 2017-2018 bear market at $268.03.
LTC IOMAP data
On the other hand, the whale transaction count has fallen from the peak of 2.501 to 4 as of yesterday. The reading is similar to what preceded the long rally that began in October 2020.
The minimum level of whales (transaction count > 100k USD) points to a new source of buying power moving forward if Litecoin price can get off the mat.
LTC Whale Transaction Count (>100K USD)
The on-chain metrics offer a positive outlook for Litecoin price, but the resilience of the 78.6% retracement at $334.86 is a significant obstacle to overcome before the all-time high at $420.00.
A failure to hold the 61.8% retracement at $268.03 will assure a test of the 10-week SMA at $ 231.47 and potentially project a decline to the channel’s lower trend line at $189.65.
Adding to the bearish outlook is the negative momentum divergence between the weekly RSI and price since the mid-February high. If a new rally high is printed, it needs to be confirmed by the momentum index.
LTC/USD weekly chart
Only a weekly close above 78.6% retracement level will encourage a re-evaluation of the bearish outlook and boost the probability of a successful breakout into new highs in the coming days or weeks.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Latest Crypto News & Analysis
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: ETH waits for no one, while art market goes crypto
Bitcoin price wavers at the 50-day simple moving average (SMA). Ethereum price 6-Week Rate of Change (ROC) indicator warns of extended conditions. Ripple price fumbles inverse head-and-shoulder bottom breakout with double-digit reversal.
DOGE plan to hit $1 seems unstoppable
Dogecoin price has established a new all-time high of $0.495 and faces no critical resistance ahead. Cryptocurrency enthusiasts have become extremely interested in DOGE again and are pushing its price to new highs.
Litecoin price seeks new all-time high, but LTC shows bearish divergence
Litecoin price failure today at the critical Fibonacci level is the second time since mid-April and lowers the odds that LTC can overcome the resistance and launch a substantive test of the all-time high at $420.00.
ETH to consolidate after setting up record levels above $3,000
Ethereum price has seen an explosive rally over the past week that led to a new all-time high. However, a consolidation might follow ETH as bulls take a breather.
Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive
Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.