1W Chart Analysis 🕵️‍♂️

Litecoin $LTC has experienced a sharp retracement this week, shedding 18.84% of its value. Here’s a breakdown of the weekly chart:

BINANCE, TRADING VIEW

  1. Candlestick Pattern:

    • A bearish engulfing candle 📉 signals strong selling pressure after the recent rally near $140, indicating a potential reversal or correction.

  2. 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.

  3. RSI (Relative Strength Index):

    • The RSI is at 55.83 🤔, pulling back from overbought levels but still above neutral, suggesting further downside potential.

  4. Volume:

    • A spike in sell volume 📊 underscores significant selling activity, potentially linked to profit-taking or market sentiment shifts.

🔎 Conclusion: The chart suggests further downside in the short term, with support likely in the $90-$80 range.

Trading Data Insights 💹

The trading metrics reveal significant market activity, indicating a bearish tilt:

  1. Money Flow Analysis 💸:

    • Daily money flow shows a nearly balanced inflow and outflow, with 21.88% sells slightly outweighing 21.51% buys, signaling mild bearish sentiment.

  2. Order Size Distribution 📊:

    • Large orders reflect outflows of -13.94K, indicating selling by institutional players.

  3. Margin Data 🏦:

    • The Margin Long-Short Position Ratio indicates increasing short bias, supported by a spike in margin borrowing, showing traders hedging against further downside.

  4. 24H Large Inflow 📉:

    • A 5-day inflow loss of -59.56K LTC highlights continued outflows, further reinforcing the bearish sentiment.

Fundamental Analysis 🔍

Litecoin remains a robust cryptocurrency with notable fundamentals:

  1. Market Cap 💰:

    • Ranked #23 with a market cap of $7.62 billion, it’s a top player in the crypto space.

  2. Circulating Supply 🪙:

    • 75.33M LTC out of the maximum 84M LTC is already in circulation, ensuring low inflation risk.

  3. Historical Performance ⏳:

    • Litecoin’s all-time high of $412.96 (May 2021) 🚀 and historical low of $1.11 🪙 show its impressive growth potential.

  4. Volume/Market Cap Ratio 🔄:

    • At 12.06%, it signifies strong liquidity and active trading.

Prediction 🔮

  • 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 ⚠️

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.

💬 Follow and like for more crypto updates and insights! Stay informed to make the best trading decisions.

Source: Binance & TradingView Data