- Litecoin worth faces a possible roadblock because the TD Sequential indicator offered a promote sign on each the 4-hour and the 3-day chart.
- LTC is at crossroads as on-chain metrics trace at an upswing contradicting the near-term bearish alerts.
Boasting over 270% returns within the final quarter of 2020, Litecoin is likely one of the finest performing cryptocurrencies. With most altcoins rallying to new highs, LTC bulls may must take a break because the TD Sequential indicator flashed promote alerts throughout a number of time frames.
Litecoin worth might pullback earlier than rising to increased highs
Litecoin worth exhibits indicators of weakness after an uninterrupted bull run since early December. The bearish formations offered by the TD sequential indicator may present LTC with a much-needed retracement.
If promote orders start to pile up, the fifth-largest digital asset might take a nosedive in direction of the closest help boundaries at $150 and $120.
LTC/USD 4-hour and 3-day chart
Including credence to the TD setup’s pessimistic outlook, a bearish divergence appears to have developed between Litecoin worth and the RSI. The same habits may be seen towards the OBV, which is making a sequence of decrease lows whereas costs have been surging.
LTC/USD 4-hour chart
If a spike in downward stress was to validate these bearish alerts, there are two elementary ranges to maintain a watch out for. The $155 help represents a ten% downswing from LTC’s present market worth.
Additional promoting stress at this stage may trigger Litecoin worth to slip to $135.
On-chain metrics stay bullish
Regardless of the a number of promote alerts that Litecoin worth presents from a technical perspective, its on-chain exercise means that the bull rally might extend. The variety of new addresses becoming a member of LTC’s community rose by greater than 57% within the final month.
Often, when the community expands for a chronic interval, costs are inclined to comply with.
Litecoin’s every day lively addresses
Furthermore, the In/Out of the Cash Round Value (IOMAP) metric from IntoTheBlock exhibits little to no resistance forward of Litecoin worth. The one vital provide wall which will pose a risk to this altcoin’s uptrend lies round $190.
An upswing past the overhead resistance would invalidate the bearish alerts and result in additional features.
Nonetheless, Litecoin appears to sit down on high of steady help which will hold falling costs at bay within the occasion of a sell-off. The demand barrier at $150 would be the first line of protection since 131,000 addresses have beforehand accrued 5.48 million LTC round this worth stage.
Holders inside this vary will probably attempt to stop seeing their investments go into the crimson. They might even purchase extra tokens to permit costs to rebound shortly in direction of new all-time highs.