LTC price is currently stuck in a consolidation zone ranging between $85.50 and $95 after rising from the $77 support level. The cryptocurrency price has been in an uptrend since November 2022 and entered 2023 with the same positive sentiment which led to the creation of an annual high at $105.71 level.
Litecoin price then melted down to $69 and regained bullish momentum to retest the annual high. The move did not sustain and was halted at the $103 level. Market
the structure shows that bears do not want litecoin price of litecoin to rise to the $100 level.
The current candle is headed toward recent support of $85.50 as the Bitcoin price has also turned bearish after the impulse move, there is a higher probability for the price to retest the support. For the price to retest the annual high, it needs to rise above the immediate resistance of $95. A break and close above the resistance might confirm a move to $103.
Litecoin is Attracting Investors
The month of May has turned out to be one of the best months for Litecoin. The number of wallets that contain LTC has jumped to 8.5 Million rising from 7.09 Million wallets which was an all-time high in the previous month. LTC wallet count rises above ADA, DOGE, and MATIC. Litecoin’s hash rate has also jumped by 25%.
Nearly 4 Million wallets have been storing Litecoin for more than one year. The halving event is scheduled for August 10th.
The volume of inflow of funds into investment products that focuses on Litecoin has reached to $800, Month to date and $1 Million year to date. The reason for all of the inflows and increase in network activity is the Halving event in August.
Will LTC Drop To the $85.50 Support Level?
Chaikin money flow score is 0.23 indicating strength in the market. RSI trades at 50.77 denoting that price is in a neutral territory facing the same pressure from bulls as well as bears. The current candle is hovering just above all the EMAs and might cross them negatively if bearish momentum prevails.
LTC price is receiving a rejection from the 20-day SMA and needs to stay above it for retracing toward the resistance level. The long/short ratio is 0.83 with 45.42% longs and 54.58% shorts indicating bearish sentiment rising in the last 24 hours.
Conclusion
The current market structure and price action is turning bearish as Bitcoin price has started to fall. The halving event has increased the network activity in Litecoin. The number of wallets holding LTC has also increased showing positive sentiment before halving events. The current retracement in price can be seen as a short pullback in the price and a retest of recent support.
Technical levels
Major support: $85.50 and $77
Major resistance: $95 and $103
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/31/litecoin-price-prediction-ltc-price-turns-slightly-bearish/