- LTC faces resistance at $150; bullish momentum remains uncertain.
- Declining user activity and negative sentiment weigh on Litecoin’s price prospects.
Litecoin (LTC) recently hit a month-high of $122, surging 16% within 24 hours and recording a 268% increase in trading volume. However, it remains 71% below its all-time high, reflecting ongoing market challenges. Despite the rally, higher timeframes indicate buyers lack control, as bearish momentum persists.
A rally followed, but the price has repeatedly failed to break above the $130 resistance zone. On 29 August, Litecoin retested this level before falling to $60. Current charts suggest a similar rejection could occur unless LTC closes above $70.75 on the daily timeframe. The daily RSI is at 61, stating that it is nearing an overbought situation.
Meanwhile, On-chain metrics further underline bearish sentiment. The On-Balance Volume (OBV) continues to decline, showing seller dominance, while the Directional Movement Index (DMI) signals a strong downtrend. Although the Relative Strength Index (RSI) nears the neutral 50 level, the lack of sustained buying pressure weakens bullish prospects.
Declining User Engagement
Network activity has also declined significantly. On 12 September, daily active addresses dropped to a 2023 low of 193,477, reducing user interest. This drop has coincided with a 13% price decline in the past week, pushing LTC below the critical $100 mark.
Moreover, Weighted sentiment, which measures social media bias, remains negative at -0.45, reflecting investor skepticism. This bearish outlook is compounded by a descending triangle pattern on the daily chart, indicating further downside potential. LTC could drop to $86.64 if buying pressure continues, with the $60 level also in focus.
For bullish momentum to return, Litecoin must overcome the $125 resistance and see an uptick in user activity and market sentiment. Until then, sellers remain in control, and further losses are likely.
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Source: https://thenewscrypto.com/can-the-ltc-rally-sustain-or-will-bears-take-over/