Recently Litecoin experienced rejection from $75 level and bounced off to $82 where price faced strong selling pressure. The current market structure for LTC is bearish and bouncing off can be considered as a pullback for price to move further down. Although the candles are forming with small bodies and long bottom wicks indicating buyers are trying to push price up. The current candle is bearish and is headed towards support of $75.
The uptrend for litecoin started on May 12 when price created a support at $69 and started to rise to retest the annual highs of $105.71 but experienced heavy rejection above $100. The LTC price bullish rally generated return of approximately 59% from the low of $65.
The price then corrected the move by falling to $75. The bears will most certainly try to shatter the support of $75 which will resume the downtrend and push the price to the major support level of $65. Buyers are expected to defend the support with strength for the cessation of bearish momentum.
Litecoins Halving Event
Litecoin’s price has surpassed the $100 psychological level but could not sustain above it. The Litecoin market is witnessing a short-term drawback, but macro conditions for the whole cryptocurrency market are improving slowly.
The possibility of the U.S. entering into recession in the second half of the year is rising as a contraction in lending amid the ongoing regional US banking crisis. If the banking crisis worsens, demand for alternatives like Gold and Bitcoin might rise, boosting the crypto-market. Lite transactions and active addresses recorded a new high, surpassing Bitcoin and Ethereum.
Litecoin turned out to be the most used blockchain on earth. Litecoin halving event is scheduled on August 4, 2023, which happens every 4 years to Litecoin’s blockchain. Halving helps in lowering the rate at which Litecoin is generated. The block reward will drop from 12.5 to 6.25 after halving.
Will LTC Price Reach $69 Price Level?
LTC price is trading below the 20,50,100, and 200-day EMAs, indicating bearish momentum in the market. Chaikin money flow score is 0.20 as buyers have started jumping in the market to protect support of $75. The market is slowly gaining strength to discontinue bearish momentum. The longs/short ratio is 1.03, with 50.63% longs and 49.37% shorts, indicating the participation of buyers has increased, and more buying positions are initiated in the last 24 hours.
This article was originally published by CryptoNews.