Litecoin [LTC] As bullish market conditions open the door for some upside, LTC has risen 25% in the past seven trading days. LTC, however, failed to generate enough buying pressure to move out of its four week range, which is unlike many of its counterparts.
Litecoin’s price of $58.68 on 20 July had already started to show signs of losing momentum after the latest rally.
After a mid-month rally, the last time that the price tested the same level was between 24-25 June. It was at the same price level that acted as a reversal area in June. There are already signs of another potential reverse.
Source: TradingView
LTC bulls are feeling resistance. This resistance manifests in the Relative Strength Index. (RSI) is a form of lateral movement at a retest.
The Money Flow Index, (MFI), highlights a similar observation. It indicates that accumulation is decreasing. This is despite there being some upside, before it is considered to be overbought.
Can Litecoin evade a pullback?
Other factors that could indicate a possible retracement are highlighted by on-chain metrics. The largest increase in age-consumed metrics occurred in the past four weeks. It reached 182.4 million LTC within the last 24 hours.
The alt’s realized cap peaked at $615.96 million during the same period. This is due in large part to the profit taking at new resistance levels.
Source: Santiment
Litecoin’s 30-day MVRV ratio peaked at 8.6% on 18 July after improving from its monthly low of -3.65% on 12 July.
It had fallen to 6.45% on 20 July, which indicates that many LTC holders are in profits and that some have begun taking out their earnings.
Source: Santiment
LTC in real-time
Litecoin’s current position suggests that it will more likely experience some bearish retracement before the bulls can regain their dominance.
As far as what to watch out for moving forward, the overall crypto market conditions still have a major impact on LTC’s price action.
LTC may have more upside potential if Bitcoin rallies. In the event of a pullback, the opposite will be true for Litecoin.