- Litecoin, which earned over 270% in the last quarter of 2020, was among the best performing cryptocurrencies. With most altcoins rising to new highs, LTC bulls may need to take a break as the TD Sequential indicator flashes sell signals over multiple time frames.
Litecoin, which earned over 270% in the last quarter of 2020, was among the best performing cryptocurrencies. With most altcoins rising to new highs, LTC bulls may need to take a break as the TD Sequential indicator flashes sell signals over multiple time frames.
Litecoin price may retreat before hitting higher levels
Litecoin price is showing signs of weakness after a continuous uptrend since the beginning of December. The bearish patterns offered by the TD sequential indicator can give LTC a much-needed retracement.
If the sell positions start to accumulate, the fifth largest crypto asset could quickly approach its closest supports at $ 150 and $ 120.
Litecoin price US dollar chart
A bearish trend appears to have emerged between the Litecoin price and the RSI, adding confidence to the pessimistic outlook of the TD setup. A similar behavior can be seen against OBV, which made a series of lows as prices rise.
Litecoin price US dollar price chart
If an increase in downward pressure is to confirm these bearish signals, there are two key levels to consider. The $ 155 support represents a 10% drop from LTC’s current market value.
Further selling pressure at this level could cause the Litecoin price to drop to $ 135.
In-chain measurements continue to rise
Despite multiple sell signals that the Litecoin price presents from a technical perspective, on-chain activity suggests that the bull rally may be prolonged. The number of new addresses joining LTC’s network has increased by more than 57% last month.
Usually, when the network expands for a long time, prices tend to follow.
Litecoin’s daily active addresses
Moreover, IntoTheBlock’s In / Out of the Money Around Price (IOMAP) measurement shows little or no resistance ahead of the Litecoin price. The only major supply wall that could pose a threat to this altcoin’s uptrend is around $ 190.
A rise beyond overhead resistance will invalidate bearish signals and lead to further gain.
However, Litecoin seems to be sitting on top of stable support that could keep falling prices at bay in the event of a sale. The $ 150 demand barrier will be the first line of defense as the 131,000 address previously accumulated 5.48 million LTC at this price level.
Owners in this range will likely try to keep their investment from turning red. They can even buy more tokens to make the prices rise to all-time highs quickly.