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Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
- LTC fell below its rising channel.
- LTC price consolidation may last through the weekend but change early next week.
Litecoins [LTC] hit a low of $61 in December 2022 but rose to $93 in January 2023, posting a gain of around 50%. The January rally follows Bitcoin [BTC] impressive performance as it jumped from $16k to $23k.
Read Litecoins [LTC] Price Predictions 2023-24
At the time of publication, the value of LTC was $87.23, with fundamentals showing a nearly neutral structure. LTC could fluctuate and consolidate in this range well into the weekend before definitive price action following next week’s FOMC (Federal Open Market Committee) announcement.
LTC price consolidation may extend briefly in the $82 – $93 range
Source: LTC/USDT on TradingView
The LTC uptrend since late December 2022 incised an ascending (white) channel. But the bullish momentum faces two main challenges. The first challenge occurred around mid-January after extended price consolidation temporarily pushed LTC out of its rising channel. The $82.44 support level held the downside and helped LTC recover and retest the channel’s midline around the $90 level.
The second challenge followed after LTC faced price rejection at $92.27, leading to a correction that sent the asset down below an ascending channel. LTC has been fluctuating between $87.23 and $92.27 for the last seven days. The price consolidation above could last through the weekend and change early next week, depending on how BTC reacts to the FOMC release.
Bullish BTC could see LTC break above the $92.27 level and move back into an ascending channel. Such a move could push LTC into the $100 zone.
But bearish BTC should see LTC drop below $87.23 and retest the $82.44 support, invalidating the forecast described above.
The LTC’s RSI value is 53 on the 12-hour chart, with a possible rejection and rebound from the mid-50 levels based on historical patterns. Therefore, LTC consolidation can continue until the weekend.
LTC open interest fluctuates as holder profits decrease
Source: Coinglass
Is your portfolio green? See LTC Profit Calculator
As per Coinglass data, LTC’s open interest rate (OI) fell around mid-January before fluctuating afterward. However, at the time of writing, LTC is posting marginal gains on OI, suggesting that more cash is moving into the futures market – a trend that could increase its uptrend momentum.
On the other hand, price fluctuations reduce holder profits. According to Santiment, the 30-day MVRV decreased from 20% to 6%; thus, short-term shareholder profits fell by more than 10%. The decline also made investors adopt a somewhat bearish outlook, as evidenced by the negative sentiment.
Source: Santim
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