LTC Price Analysis: Trapped In A Range, Will It Reclaim $100 Ahead of Halving Event?
Qadir AK2 Aug 20231 min read
Maintaining a positive trend in the weekly chart, LTC price shows a 94% recovery in the last year. Rising above the $100 psychological mark after a year, Litecoin’s price fails to sustain the uptrend due to increased overhead supply.
Starting a negative trend in the rising channel, LTC prices are down by 20% in the last month. The ongoing bearish phase warns of a 14% drop to the bottom support trendline close to $75.
However, the declining trend in the trading volume fuels an early reversal possibility, avoiding further downfall.
Moreover, large investors like the Dolphins and Sharks are continuously buying LTC tokens. According to Santiment data, they have collectively purchased more than 200,000 LTC. This increase in buying indicates growing confidence in an early bullish reversal in LTC prices.
Currently, the LTC price action forms a consolidation phase in the 4-hour chart, between $88-$95. With a 3.97% fall in the 4-hour chart, the LTC price action displays three consecutive bearish candles.
The declining trend in the bearish phase, even in the 4-hour timeframe, supports the possibility of an early reversal. Moreover, the RSI line depicts a bullish divergence.
Considering the buyers fail to hold dominance at $88, the LTC price will challenge the $82 mark before retesting the $72 support.
On the positive side, a bullish reversal breaking above $95 can fuel the breakout rally and pump the LTC price to $104. If the breakout rally manages to sustain above the $100 mark, the buyers can drive the uptrend to challenge the previous swing high at $113.
