LTC’s Bullish Momentum Falters as Overbought Signals Emerge

  • BRC-20 tokens flooding into LTC-20 may increase Litecoin network activity.
  • Overbought stochastic RSI and negative BBP suggest LTC market correction.

Litecoin (LTC) began the day with a 24-hour low of $78.18, but bulls rapidly took control, driving the price to $81.97 before hitting resistance. The price is currently $80.56, representing a 1.34% gain in positive momentum.

Traders’ anticipation of a bull rally has resulted in a 1.35% increase in market capitalization and a stunning 31.60% increase in 24-hour trading volume to $5,872,692,063 and $594,060,510, respectively.

This increase could be attributed to the excitement surrounding the entry of BRC-20 tokens into Litecoin’s LTC-20, with over 840 tokens generated to date. This rise in token creation may result in more activity on the Litecoin network, increasing daily transactions and active addresses.

LTC/USD 24-hour price chart (source: CoinMarketCap)
LTC/USD 24-hour price chart (source: CoinMarketCap)

The LTC market’s Balance of Power (BOP) value is currently -0.06 and is rising, signaling a possible shift toward bullish momentum. As the BOP approaches zero and enters positive territory, it indicates that purchasing pressure is building, which could lead to a price gain for Litecoin.

A Chaikin Money Flow indicator of 0.09 and moving upwards indicates that purchasing pressure in the LTC market is intensifying.

A positive CMF value suggests that there is more purchasing pressure than selling pressure, which could lead to an increase in the price of Litecoin and hence supports the continuation of the bull trend.

LTC/USD chart (source: TradingView)
LTC/USD chart (source: TradingView)

With the stochastic RSI now in the overbought range and below its signal line at 86.30, the positive momentum in the LTC market may be winding down.

This overbought rating indicates that the recent price surge in Litecoin was too quick and unsustainable, and a correction is likely.

The Bull Bear Power (BBP) indicator adds to the impression that the LTC market’s bullish momentum is fading. The current BBP rating of -0.020625 suggests that bears are gaining some market power, and the price of Litecoin may be due for a correction or consolidation period.

LTC/USD chart (source: TradingView)
LTC/USD chart (source: TradingView)

In conclusion, while the LTC market has seen significant gains, indicators suggest a potential correction on the horizon. Traders should keep a watchful eye on market developments to navigate potential volatility.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.

Related Articles

Back to top button