- Litecoin experienced a sharp increase in prices before facing a sharp decline.
- The LTC reached $ 127.70, a key resistance level, before investors started to make profits, causing a slowdown.
Litecoin (LTC) experienced a sharp increase in prices before facing a sharp decline. The initial optimistic momentum has probably been fueled by macroeconomic factors, including the news of the increased adoption of cryptography in the American reserve.
Source: Coringlass
The LTC reached $ 127.70, a key resistance level, before investors started to make profits, causing a slowdown.
This net sale was still amplified by the failure of maintenance above the $ 120.48 (trace level of 38.2%), resulting in increased sales pressure.
The $ 118.25 (retracent at 50%) acted as a brief support, but the rejection of $ 123.46 said that the bears were still in control.
Why drop?
The recent drop in LTC is aligned with lower lower technical indicators.
The EMA cross has shown a downward momentum, with prices for lower prices to the exponential mobile averages of 9 days and 26 days, signaling the risk of drop in potential.
Rejection at $ 123.46 strengthened the short-term lowering feeling, because the bulls failed to maintain the gains above the level of resistance.
In addition, Fibonacci’s trace levels suggested that $ 116.02 remained a level of critical support. Ventilation could accelerate losses at $ 112.85, confirming a deeper decline.
The structure of the graph indicates potential double -bottomed training, suggesting a possible trend reversal if the bulls defend the region of $ 116. If a rebound occurs, the LTC could recover $ 121.74, the last resistance to the key mobile average.
A sustained movement below $ 116 would confirm prolonged down pressure. Conversely, if the bulls regain control, the LTC could push around $ 127.70, with an escape above this level leading to a test of $ 132.
Implications for the action of future prices
Netflow data has revealed significant exchanges, suggesting an accumulation. The 24 -hour variation of -50.49K LTC indicated that traders withdrew large quantities, which could reduce the sale pressure.
Over the past seven days, + 9.16K LTC have passed in exchanges, signaling the interest in short -term sales. However, the 30 -day net output of -68.96K LTC suggests a wider accumulation.
Source: intotheblock
When Netflow Total is close to 0, the feeling of the market remains neutral, without solid bias towards purchase or sale.
However, sustained outings generally indicate an upward accumulation, because fewer tokens remain in exchange for an immediate sale. This is aligned with the recent support of the LTC at $ 116, where buyers could intervene.
If the exchange exits continue, the LTC may feel compression of the offer, which increases prices. Conversely, if the net inputs increase, the sales pressure could increase, leading to a new drop.
Netflow trends monitoring alongside prices will provide a clearer direction for the next LTC movement.
Profitability and impact on the market
Finally, the analysis of the profitability threshold of the LTC made it possible to give an overview of the feeling of investors and the potential supply pressure. At the price of the press of $ 117.17, 76.78% of holders remained profitable, while 21.22% were at a loss.
The remaining 2% was beaten.
Source: intotheblock
This distribution suggested that most investors were still in profit, reducing the probability of selling panic.
The majority of SLD holders have acquired their positions at prices less than $ 117.17, making solid levels more likely to hold.
However, a decrease around $ 113.83 or less could trigger an increase in the sale of those looking to minimize losses.
If the LTC grows above $ 119.36, more traders will enter the profitable area, reducing the sale pressure. An escape greater than $ 127.70 would see most profit stations, supporting a thrust around $ 132.
However, if the SLD breaks below $ 113.83, the downward pressure can increase, the potential decreases extending around $ 108.80.
Data from the profitability threshold strengthens the importance of key price levels in the dictation of short -term LTC trajectory.
