1W Chart Analysis ๐ต๏ธโโ๏ธ
Litecoin $LTC has experienced a sharp retracement this week, shedding 18.84% of its value. Hereโs a breakdown of the weekly chart:
Candlestick Pattern:
A bearish engulfing candle ๐ signals strong selling pressure after the recent rally near $140, indicating a potential reversal or correction.
Moving Averages (MA):
The 7-period MA at $104.94 was breached, signaling short-term bearishness.
The 25-period MA at $77.39 and the 99-period MA at $79.85 now serve as potential support zones.
RSI (Relative Strength Index):
The RSI is at 55.83 ๐ค, pulling back from overbought levels but still above neutral, suggesting further downside potential.
Volume:
A spike in sell volume ๐ underscores significant selling activity, potentially linked to profit-taking or market sentiment shifts.
๐ Conclusion: The chart suggests further downside in the short term, with support likely in the $90-$80 range.
Trading Data Insights ๐น
The trading metrics reveal significant market activity, indicating a bearish tilt:
Money Flow Analysis ๐ธ:
Daily money flow shows a nearly balanced inflow and outflow, with 21.88% sells slightly outweighing 21.51% buys, signaling mild bearish sentiment.
Order Size Distribution ๐:
Large orders reflect outflows of -13.94K, indicating selling by institutional players.
Margin Data ๐ฆ:
The Margin Long-Short Position Ratio indicates increasing short bias, supported by a spike in margin borrowing, showing traders hedging against further downside.
24H Large Inflow ๐:
A 5-day inflow loss of -59.56K LTC highlights continued outflows, further reinforcing the bearish sentiment.
Fundamental Analysis ๐
Litecoin remains a robust cryptocurrency with notable fundamentals:
Market Cap ๐ฐ:
Ranked #23 with a market cap of $7.62 billion, itโs a top player in the crypto space.
Circulating Supply ๐ช:
75.33M LTC out of the maximum 84M LTC is already in circulation, ensuring low inflation risk.
Historical Performance โณ:
Litecoinโs all-time high of $412.96 (May 2021) ๐ and historical low of $1.11 ๐ช show its impressive growth potential.
Volume/Market Cap Ratio ๐:
At 12.06%, it signifies strong liquidity and active trading.
Prediction ๐ฎ
Short-Term: Litecoin may drop further, testing support around $90-$80, with a potential rebound if RSI approaches oversold levels.
Mid-Term: Consolidation near support could pave the way for a rally toward $110-$120 if buying momentum returns.
Long-Term: Litecoin has the fundamentals to reclaim $140 and potentially target $200+ in 2024, especially if broader market conditions improve.
Disclaimer โ ๏ธ
This analysis is for informational purposes only and does not constitute financial advice. Cryptocurrency trading involves substantial risk. Please do your own research before making any investment decisions.
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Source: Binance & TradingView Data
